Advisors have long struggled to find time to spend counseling clients, with at least one 2023 study by JD Power indicating nearly a third of advisors (28 percent) are facing this predicament. Technology has helped advisors claw back time by automating time-consuming manual processes – but as research by Cerulli notes, ensuring integration between all elements of the tech stack is crucial for advisors and wealth firms, with chief technology officers leading the charge.
Enter data orchestration, a strategy referring to the process of ingesting, transforming, translating, storing and synchronizing data across disparate sources and systems, all done behind the scenes.
Why is data orchestration critical for registered investment advisors (RIAs)?
Advisors who are already struggling to find enough time for client meetings are becoming increasingly frustrated due to numerous inefficiencies in their business operations. These inefficiences are rooted in the manual handling of administrative tasks, which not only consumes valuable time but also poses significant compliance risks and the potential for human error when it comes to integrating data across all of these systems.
Data orchestration streamlines the integration of data from various software products into RIA tech stacks and reduces the inherent friction involved. This creates an ideal environment for advisors to concentrate on their core strengths.
Data orchestration works in the background to allow bidirectional facilitation of information, equating to smoother operations and improved decision-making abilities. Ultimately, the strategy facilitates more efficient workflows, freeing up time for everyone involved to focus on more important core tasks.
Data orchestration can help to transform how an advisor works, fostering greater connectivity and improving the usability of technologies. It’s akin to the impact of the cross-country railroad and interstate highway systems in America, which helped facilitate commerce. By enabling a fully integrated tech stack and allowing data to flow freely among its components, data orchestration empowers advisors and fintech providers alike.
Through the automation and consolidation of disparate operational and administrative processes, data orchestration streamlines many tasks for advisors such as onboarding new client data across the tech stack and accommodating inevitable changes to client profiles over time. This approach minimizes the risk of human error and associated inefficiencies, which can potentially lead to compliance issues or rejections from custodians when processing new applications. It also can help RIAs scale more easily by eliminating barriers that were preventing them from engaging in client-facing activities – potentially leading to increased client satisfaction and more referral business.
Furthermore, data orchestration has the potential to create truly magical user experiences for RIAs, elevating the client experience.
Bidirectional integration facilitated by data orchestration enables all solutions to communicate seamlessly, ensuring data synchronization across all platforms utilized by an RIA. A robust data orchestration layer serves as the foundation for a truly integrated tech stack, enabling the seamless integration of every tool within the ecosystem, ultimately resulting in more efficient advisor workflows.
In essence, data orchestration represents a paradigm shift for RIAs that transcends mere connectivity, fostering a symbiotic relationship between advisors, clients, and fintechs. By removing intrinsic barriers and enabling an efficient flow of data between fully integrated technology components, it unlocks unprecedented opportunities for growth, collaboration, innovation and user-centric experiences. A strong data orchestration layer enables every tool to be integrated with a protocol for a truly integrated tech stack, resulting in more efficient workflows.
Moving forward, the importance of data orchestration for RIAs will continue to be amplified. The dynamic nature of technology and software utilization within the advice industry will necessitate constant iteration and innovation to develop new, better ways of operating. As a result, both forward-thinking advisors and software vendors are recognizing the importance of a seamlessly integrated tech stack when it comes to scaling.
Leveraging a partner dedicated to seamlessly integrating emerging technologies improves both the product and user experience – enabling RIAs to scale their practice more efficiently via their tech stack, while giving advisors time back for important client-facing activities like planning, ultimately delighting their clients in the process.
Madalyn Armijo is the co-founder and chief operating officer at Dispatch, a platform that helps financial advisors easily onboard and sync client data across their tech stack.
Iowa's Greenwood Wealth Partners exits D.M. Kelly as UBS and Ameriprise win Merrill Lynch recruits in California and Florida
Less than 1% of pool funds went to actual trading, CFTC says
Plus, SEIA builds a governed data foundation for its in-house AI and Snappy Kraken debuts a read-only marketing coworker for advisors.
He owes $364 million but pays $100 a month
Broadridge, Wedbush and Alaris Acquisitions have also filled senior wealth management roles with hires from J.P. Morgan, Osaic and SageView.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
