With the industry under intense margin pressure, not only is it being increasingly recognised that technology companies must get more efficient in their delivery, but also they must think much about the costs in terms of human resources for client firms to operate that technology.
Most advisory firms, particularly independent RIAs, spend the greatest percentage of their tech budgets on investment-related software, with portfolio management and accounting contributing significantly to overall cost in many cases.
As this article highlights, in the portfolio management space, technology providers are starting to pivot into adjacent spaces, however this may only mask the real issue is that traditional portfolio management methods are expensive to operate.
At Financial Simplicity, we believe we have engineered with human centric design much of the portfolio management functions to an art, and this is perhaps the disruption that this article refers to.
http://www.financial-planning.com/news/digital-tech-developments-in-the-wealth-management-industry
