We don’t need to tell you that technology in financial firms and businesses is exploding. It seems like every day, companies are coming out with new technology and new ways to manage your clients’ wealth. This can be a confusing maze to navigate, what to buy, when to buy, and how to integrate that technology into your firm can make your head spin.
This article will help you answer the biggest question when it comes to fintech: Do I even need new tech in my firm?
There are a couple of questions you should ask yourself, and maybe your clients, before pursuing new technology for financial management.
Realistically, would my clients benefit from new tech?
Technology can often have a “keeping up with the Jones” effect. Business owners often times buy new technology simply because a competitor is doing it or they just think it’s what “needs” to happen. You need to be pragmatic and rational; would anyone in my firm, clients or employees, really benefit from this technology? How will the technology help improve the client experience?
Are you trying to use technology as a “magic bullet?”
Technology can’t save outdated practices, but it can make good ones better. If something is off in your firm, don’t think that upgrading the technology is going to solve all your issues. A hard look can determine if you’re simply falling behind because of a lack of technology or it can uncover fundamental problems with how you are engaging with your clients.
Make sure you have audited your own business practices or ask an outside observer to do something similar before going all-in on new tech.
Will the tech be supported in the years to come?
This is one of the most critical questions that are usually overlooked. New technology is great, until it becomes old technology and can’t be updated and/or support for it has been terminated. If you’re going to dive into new tech, make sure that it has longevity. Your firm and your clients won’t want to switch tech and learn new software soon after mastering the old one.
If you decide to invest in new technology, it’s important that you ask yourself these questions before pulling the trigger. If your clients are trusting you to invest their money wisely, you should do the same with your own.