Clients will appreciate that better tech makes them safer, and you more efficient.
All told, wirehouse brokers managed more than $6.3 trillion in client assets at the end of 2015. In the independent channel, there are more than 120 RIAs that each manage at least $1 billion in assets and nearly 300 RIAs each managing between $250 million and $1 billion in assets.
If your firm is like most modern wealth management firms, you use software from several different vendors. Portfolio managers, custodians, business administration and cloud computing providers, just to name a few.
So how confident are you that your client data is safe in the hands of all those other companies? All it takes is one cyber breach at a vendor – or a company the vendor contracts with – to put your firm at risk.
“Software as a Service,” or SaaS, is fast becoming a standard model for RIAs and broker-dealers. There are vast advantages to allowing a vendor to host an application for customers to access through the Internet. Speed, scale and cost-effectiveness are among the greatest benefits of SaaS.
On the other hand, vendors vary wildly in resources and reliability. In the age of rampant cyber crime, wealth management firms must exert vigorous due diligence on all vendors. Here are 10 questions to ask when shopping around.