Financial advisors use a number of different software solutions when analyzing client portfolios and making important decisions that affect their nest egg. From customer relationship management (CRM) to portfolio tracking and document management, there are a number of solutions addressing many different needs faced by advisors. Those just getting started in the industry or looking to make a switch may want to take a look at all of their options.
Let's take a look at some of the most popular software solutions for financial advisors and some of the benefits associated with each. (For more, see: Top Digital-Age Tips for Financial Advisors.)
Redtail Technology provides a CRM platform for financial advisors to manage communications with clients. The platform is cost-effective, easy and tailored to financial professionals. It includes office automation and integration with technologies commonly used by planners, such as Morningstar Inc., Riskalyze, LaserApp, AllBridge and MoneyGuidePro among others.
In addition to its CRM technology, the company provides a secure document storage and imaging service and an e-mail archiving service. These types of audit trails are required by many governing bodies, while integration with the rest of the platform means that financial advisors don’t have to work with multiple vendors in order to meet their needs. The e-mail solution is also fully-integrated with the CRM to make workflow a breeze. (For more, see: Financial Advisors Are Feeling Cyber-insecure.)
MoneyGuidePro has been the most-used financial planning software for seven straight years, according to Financial Planning’s survey of registered investment advisors (RIAs). With sophisticated but easy-to-use goal-based planning tools, the software helps with everything from calculating college savings to maximizing Social Security. The Play Zone and What Are You Afraid Of? features also help clients determine how certain changes might impact portfolios.
Financial advisors will also appreciate the detailed reporting capabilities that generate beautiful reports for clients, as well as a full suite of integrations with popular CRM software and brokerage services. Moreover, smart data aggregation technologies ensure that advisors are seeing the complete picture rather than trying to piece together financial assets from multiple sources on their own – no small feat for the average advisor! (For more, see: How Technology Helps Financial Advisors.)
eMoneyAdvisor is a next generation financial platform that helps advisors with everything from cash flow planning to practice management. The software provides a quick and easy overview of a client’s financial situation and custom branding options to showcase those data points to clients online without worrying about the development and maintenance costs of an in-house solution.
In addition to its client-focused tools, the software provides financial advisors themselves with tools to manage their practice. The in-depth analytics dashboard provides instant insights into the financial health of both clients and the practice itself, including data detailing client age groups, top movers, assets by institution, and other metrics. The Vault and TouchPoint features also ensure secure document storage and compliant client messaging. (For more, see: 10 Best Tools for Financial Advisors.)
Riskalyze is a risk analysis tool designed to help financial advisors pinpoint risk tolerance, engineer portfolios, map retirements, and stress-test clients against potential downturns in the future. By providing clients with risk assessment tools, the software enables advisors to collect valuable data needed to close leads and address many serious client concerns that other advisors may have a hard time doing without the right tools.
Unlike the aforementioned services, financial advisors can use Riskalyze as a value-added tool to help with marketing and portfolio design rather than client management and reporting. Redtail and other solutions are fully integrated with the software, making it easy to add value to client engagements and ultimately generate more business. The software is especially useful when onboarding or interviewing clients to generate a complete risk workup. (For more, see: Top Tools Every Financial Advisor Needs.)
The Bottom Line
There are many different software solutions designed to make the life of financial advisors a lot easier by automating client workflow and enhancing marketing efforts. In general, advisors should try out these solutions and keep on top of any new entrants in order to maximize their competitive edge in an industry that’s becoming increasingly driven by software. (For more, see: 6 Tech Trends Advisors Must Stay Ahead Of.)