Many of the larger firms I work with have a dedicated Chief Technology Officer (CTO) role. These firms have found that investing in technology staff and resources has raised the quality of service for their clients. Several of these firms such as Bartlett Wealth Management have had in-house technology support for decades.
The original founders and leaders of Bartlett Wealth Management were on the forefront of using technology by having support available to meet the needs of their employees and clients. Today, at Bartlett, the CTO meets frequently with management to stay aligned with the business and how technology adds value to the team. Their primary focus is cyber security, maintaining and maximizing asset management systems, and providing help desk support to the firm’s’ 65 employees.
One of their recently completed technology projects was the installation of Zoom Rooms. These rooms enable their two office locations in Cincinnati and Chicago to videoconference with clients and each other by simply dialing and speaking into the room. This was an extremely important project not only to enhance client interactions, but also their employee interactions as many had never met in person and the technology allowed them to meet virtually. This type of investment adds tremendously to the engagement level of employees. The ability to virtually connect with co-workers and collaborate on solving client issues is invaluable. According to Matt Whalen, CTO for Barlett Wealth Management, “If you are a technology forward firm you need to make the investment in technology.” “New employees to the firm have a ‘wow experience’ as some have never worked in a firm that provides onsite tech support.”
According to the 2019 TDIA People & Pay Study, the Chief Technology Officer oversees the firm’s technology budget and is responsible for the implementation of technology solutions in alignment with the firm’s strategic vision. Responsibilities of a Chief Technology Officer range across database architecture and development, technology infrastructure and data security. One of the most important aspects of this role is to provide the firm’s technology vision and ensure that all systems are in place to support the firm’s operations and data security. According to Dan Jurgovan Principal/CTO at JMG Financial Group, one of his team’s primary objectives is implementing new software and training. For Dan and his team “the employee is the client” and they are always asking, “what can they do to service them and ultimately support the end client more effectively? ”They do this by providing in-person meetings, training sessions, and they have created video training for employees to access on demand. Dan collaborates with the Chief Operating Officer (COO) to make sure employees have what they need and are happy using the technology.
At smaller firms, a Chief Technology Officer role may not be needed. Instead, I would recommend creating a similar role such as IT manager, database manager, or portfolio reporting specialist. One practice I encourage my clients to consider if they cannot afford to invest in dedicated tech support, is creating Subject Matter Experts (SME) for each technology system or software being utilized by the firm. SME(s) are an integral part of the implementation of technology by interfacing with tech vendors, staying current on software updates, and being tasked with training the rest of the team. I recommend rewarding these tech responsibilities through your incentive compensation plan.
Most of the firms that I work with believe that technology is critical to the success of their firm. The cornerstone to this success is an increase in productivity that technology provides. This is evident by the number of technology initiatives that are available to firms to employ, including CRM systems, performance reporting and financial planning software, data storage/document management systems, and cyber security programs. Firms emphasize technology as a key tool to improving productivity – because increased productivity can lead to success across the board in efficiency, client retention, revenue growth, and profitability.
The use of technology also addresses a key priority for all firms, which is freeing up more partner and advisor time for business development. By using technology to streamline administrative tasks at the firms, partners and advisors can allocate more time to servicing existing clients and looking for new business. Having the extra time to work with clients improves responsiveness and increases client retention and referrals. Matt Sonnen the CEO & Founder of PFI Advisors, sees the growing need for advisory firms to leverage technology to run all aspects of the firm and back office. He feels that the CRM for example, enhances the client experience and helps to embed the value of the firm with each interaction. “The goal of every advisory firm is to provide a high touch experience and as a firm’s client base becomes larger the only way you can achieve this is through leveraging technology”.
Kelli Cruz is a Financial Planning columnist and the founder of Cruz Consulting Group in San Francisco. Email her at kelli@cruzconsultinggroup.com or follow her on Twitter at @KelliCruzSF
