Doc Management Software for Financial Services Companies in 2017

Doc management software for financial services companies is becoming as crucial of a component to financial advisors’ professional portfolios as choosing the right securities is to the clients they advise.

In the financial services industry, fee only financial planners are becoming the norm as consumers want to steer clear of financial services professionals commissioned to sell products that may not meet the needs of a specific client base.

The fee only financial planning model has given more credibility to the industry in 2017, and revealed a lot of other concomitant investment management trends, which bode well for the use of and adoption of doc management software for financial services companies.

Here are the financial services industry trends that encourage the adoption of doc management software for financial services companies:

Smaller Firms Vying for Market Share in a Big Pond

Smaller investment advisories and financial services professionals are pushing hard to develop a niche in their market, a big challenge given the number of huge players in the space, including but not limited to Sun Capital, Bain Capital, Olympus Partners, and Motors Liquidation Company.

The financial services market’s biggest players have built their businesses solely on reputation and great service—creating significant barriers to entry for beginning players and fast followers alike.

As the struggle for marketplace equity continues, an increasing burden is placed on smaller firms to differentiate their services and expertise from other players in the market.

How Doc Management Software for Financial Services Companies Helps

Advisers dubbed with the Registered Investment Adviser (RIA) designation, are striving to grab new business amid these steep market challenges, and the climb will only become more intense and insurmountable without doc management solutions.

Doc management software for financial services companies helps independent financial consultants and smaller firms garner the efficiency they need to outcompete bigger players in the market.

RIAs are usually consulted to provide education to clients on securities like mutual funds, money market funds, bonds, and exchange-traded funds.

A Skyrocketing Cost of Compliance for Financial Services Professionals

The Independent Adviser Oversight Act imposed a seemingly simple standard for financial services professionals.

In a market where consumers gauge the strength of different firms’ offerings based on their track record for success and not necessarily compliance, those working for financial firms have been frustrated by both the impending and current impact of legislation on firms’ ability to acquire new customers and tend to strategic initiatives.

The Act just asked the smaller firms to become part of certain adviser associations. Although not obvious, this adds to the reporting financial services professionals must undertake to remain compliant and remain in good standing with the ever-increasing scrutiny of regulators.

How Doc Management Software Helps Financial Advisers with Compliance

With built-in security to simplify compliance, doc management software for financial services companies doesn’t automate compliance, but it does reduce the amount of time it takes to achieve compliance.

More specifically, the audit trail functions of these solutions tracks and traces all activity occurring within the system, including the times at which certain activities occur.

Additionally, SEC (Securities and Exchange Commission) compliance can be simplified through these systems—whether on premises or in the cloud.

These platform agnostic features can provide the flexibility and bandwidth needed to simplify the many compliance challenges faced by small to mid-sized investment services professionals.

Choosing Between Low Costs and Highly Tailored Financial Strategies

In an era of client specialization and highly tailored services, smaller financial advisories and professionals are fighting to provide highly tailored services without sinking into the negatives on the ROI calculator.

Although many deem this the result of many smaller firms and advisories lacking certified planners and wealth managers who specialize deeply in one area, the root of the problem is operational.

Financial planners are expected to self-educate more than ever, and the resources available for this training to bridge any existing gap in expertise is simply a matter of freeing up the resources to spend time on training and specialization without losing money.

When there is a shift from tailoring services to a specific client base,  many advisers default to targeting only the wealthiest individuals, shoehorning themselves into one area of expertise and leaving the rest of the market in need of financial services unsaturated and, therefore, un-leveraged.

Although this is the case because some advisors are paid commission based on the total volume of wealth they handle, it’s also because only the very wealthy tend to be interested in consulting professionals to manage their wealth, subtracting from the diversity of skillsets most financial advisors, planners, and consultants need to remain competitive (in price and practice) to those who would otherwise be interested should the services become more accessible.

How Financial Doc Management Helps the Situation

Doc management software for financial services companies provides the efficiency, digital transformation, and process automation conducive to better resource allocation and improved operations.

As the population grows, so will the paperwork. As the paperwork grows, so too will the time spent finding the documents on which valuable information resides.

Not only does it provide the mobility and accessibility that financial advisers need to tend to clients effectively, it merges security and accessibility through technology, which, until recently, were viewed as mutually exclusive benefits to document management services. Cloud-based doc management solutions for financial services companies help to solve these discrepancies.

How Do Consumers Choose Their Advisers?

Perhaps the greatest step financial professionals can take to answer this question in their favor is by eliminating the roadblocks to great service in the industry. These chasms can be narrowed significantly if advisers look at their own toolkit as an asset allocation plan.

Doc management software for financial services companies can help advisers and wealth management professionals grow their skill set and book of business alike. In an industry dominated by those who allocate resources as they should, time will be the biggest factor between those who serve clients and grow the business and those who fall into a sphere of obsolescence. Are you and your firm ready to stay relevant with document management?

By | 2017-06-26T17:13:39+00:00 May 22nd, 2017|
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