The Word “TAMP” Isn’t the Problem
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
TAMPs get a bad rap.
They’re viewed as rigid and inflexible, forcing advisors to adjust their businesses to accommodate the TAMP platform instead of offering the flexibility and control to construct portfolios based on their own investment expertise and research.
They’re built on cumbersome, outdated software models – fundamentally at odds with the lightning-fast and easy-to-use technology today’s advisors need to remain competitive in our crowded landscape.
They’re prohibitively expensive, with hidden fees baked into the cost of using the platform.
Those observations aren’t totally off base, but they don’t tell the full story.
Like most stereotypes, those harsh generalizations don’t characterize all TAMPs. And advisors who avoid the TAMP space based on those preconceptions are missing out on the powerful competitive advantages they create.
The right TAMP = A differentiator
To remain competitive, advisors can’t afford to spend most of their time managing investments and tedious back-office systems. Independent advisors, many of whom are small-business owners, face increasing demands from clients and need to find a way to offboard non-client-facing tasks to focus on meeting client needs and business development functions.