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Financial literacy month has come and gone, but that isn’t the only area where individuals could stand to have a little more education. Wealthtech is another area, especially at a time when firms and advisors are working through the most challenging era of digital transformation. Those trying to get their tech stack to be the best that it can must recognize where their blind spots are and learn the lingo of consultants. If they pursue that route, they can get the most out of the relationship.
If you don’t fully understand why a technology solution is performing certain tasks and why a process works best in a certain way, then it is much harder to use the solution to its fullest potential. There is nothing wrong with quietly admitting your own human failings so your firm’s technological capabilities can continue growing.
A major disconnect between advisors and consultants is that operations and technology are often siloed when, in fact, to truly understand the business, you need to have a deep knowledge of the technology platform and vice versa.
People need to think differently about their technology and how it fits into their systems. To get the best results from technology, it must be connected to the process and vice versa. Putting them together and thinking about them in that way will lead to a better understanding and outcomes.
As technology continues to evolve, both in the wealth management industry and beyond, it can be easy for some to feel like they are being left in the rear-view mirror. An in-house tech expert, who is very capable of setting up computers and managing some systems, may simply not be a capable chief technology officer. That is a highly skilled and difficult designation for which many are clamoring and paying top dollar. Without proper expertise and literacy of the subject matter, it’s almost impossible to fully benefit from the technology.
Gaining an understanding of how a specific technology benefits the entire system will unlock rewards and ultimately lead to success.
It’s akin to using words to form and structure a sentence. If you don’t fully understand the words you are trying to use, then it will be almost impossible to form a coherent sentence. If, however, you have a good grasp of the language you are using, you can be an excellent writer, and produce great work.
When engaging a consultant, come to the table with an idea of what you would like improved or what your firm can’t accomplish on its own rather than having one of those “let’s just see where the conversation takes us” chats. Direction is helpful for everyone involved.
Scott Lamont is director, consulting services, F2 Strategy, a wealthtech management consulting firm serving complex wealth advisory firms.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
