The Alternative Tech Stack

The T3/Inside Information Software survey is up and ready to welcome advisor participants. This year’s survey features more than 300 different programs and solutions, broken down into 36 (!) different categories. Joel Bruckenstein, my partner in this survey, and I estimate that most advisors can complete it in about 15-20 minutes because our data from previous years tells us that most of you aren’t using many of the categories (Remote transcription services? Cloud hosting solutions? Economic analysis and stress testing tools? Social media archiving resources?) and you can quickly skip right on through those pages.

But… can there actually be 300 relevant software tools and solutions in the fintech space? Although the survey is designed to capture market share and user satisfaction data, it also helps advisors and their firms see a very rich, broad fintech ecosystem beyond the market share leaders. In fact, one can create a tech stack that doesn’t include any market share leaders, and it would in many ways be superior to some of the well-known programs you’re using now.

Don’t believe me? Let’s take a look at the powerful feature set an advisory firm could put together from a collection of the higher-rated, low-market-share programs and solutions that I’ve collected from past surveys, many of which you may not even be aware of.

Risk tolerance

You engage a prospect in an initial Zoom call, talk about their life and circumstances and goals, and what else? You want to know how aggressive or timid they are before you recommend one of your model portfolios.

The leading market share tool, as you know, is a series of proposed six-month returns and losses, where the prospect chooses one or the other iteratively until he or she is given a risk score between 1 and 100.

And… that’s it. Now you know the prospect is a 43, and there’s a tool that gives the prospect’s existing portfolio a score between 1-100, and tests each of your model portfolios. You point out the difference between the prospect’s score and the prospect’s portfolio, and recommend your model portfolio that is closest to a 43.

If you think that giving clients a two-digit risk tolerance number is a bit naive, then try Andes Wealth Technologies.