How Software Can Optimize Wealth Management

A financial advisor has to perform numerous roles and functions to serve their client’s interests and grow their wealth. Some of these roles involve providing financial guidance, meeting with their clients, and signing more clients to grow a wealth portfolio under their management. In addition, financial advisors have to perform many administrative tasks such as encoding client data, updating client databases, as well as preparing and generating reports. 

Many financial advisors spend very little time meeting and engaging their clients on how to grow their wealth portfolio. The reason is that they have to spend a lot of their time on all these other small things which have more to do with the administrative side of wealth management. The good thing is that the latest technology has already come up with some of the best CRM for financial advisors. Here are some of the various ways by which automation technology and software applications can optimize wealth management.

How Software Can Optimize Wealth Management

1. Enhance Productivity Through Automation

One of the first things that software can do to optimize wealth management is to enhance productivity through automation. Database management, user interface, and experience, as well as customer relationship management (CRM) software applications and technology, have immensely accelerated in the past several years. These advances have been translated into more computing power, more functionalities, and the shift to automation. 

Automation has empowered financial advisors to enhance their communication platforms and approaches to their clients. It also allows them to streamline their processes through the automation of repetitive tasks. Thus, gaining a deeper insight out of the data they’re fetching from their client’s profiles and the financial market as a whole. The impact of automation has been to increase the productivity of financial advisors by freeing up their time from non-revenue generating or sales-related activities. 

The introduction of new tools such as artificial intelligence (AI), machine learning, and big data analytics, has been applied in automation projects on numerous administrative tasks. These tasks involve data entry, chatbots, database updates, and auto-filling of forms among others. The effect of this for financial advisors means they would no longer have to do these activities. Hence, leaving them with more time to do what they’re supposed to focus on. 

2. Focus Efforts On Wealth Management For Clients 

With a large portion of their time freed up from redundant, repetitive, and non-revenue-impacting activities, financial advisors now have more time to concentrate on other endeavors.  These activities include managing the wealth and assets that their clients have entrusted to them, as well as signing more clients to their portfolio management.

The main task of a financial advisor is to create value for wealth management and asset protection for their clients. For some portfolios under management, this involves giving guidance and advice to their clients on where to invest their assets and finances. To be able to do this, financial advisors have to be constantly updated with the latest news and developments. 

Financial advisors should be knowledgeable in headlines affecting world markets, financial markets, stock markets, real estate markets. Aside from this, they should be well-versed in markets for securities, bonds, commercial notes, and treasury bills, among others. 

But before things got automated, they spent most of their time encoding the personal and financial information of their clients and managing their client database. This took a chunk of their time from reading more financial news and monitoring global market developments.

3. Improve Client Data Collection

Another area that has also immensely benefited from the wave of automation technology and software applications is client data collection. There was a time when being a financial advisor meant you had tons of papers piled up near your office desk. These physical files contain the personal and financial information of your prospective and current clients. It was also part of their job to encode all those application forms into the financial database of a brokerage or company.

This caused a lot of delays, inefficiencies, and even inaccuracies and errors because of the encoding process. Imagine having to encode all the application or registration forms of a hundred prospective clients. These aren’t even current clients yet because some haven’t subscribed a single penny yet to your wealth management services. However, this process already wastes dozens of work hours just to get their information into the database. 

Moreover, this method is now a thing of the past. Automation software and technology immediately parses data from application or registration forms and inputs them into the customer database. This immensely improves the client data collection process as it allows financial advisors to optimize the client data and improve wealth management. 

4. Enhances Customer Relationship Management

Another way by which software applications and technology optimize wealth management is that it vastly enhances the CRM systems, strategy, tools, approaches, and methods that can be used by financial advisors. Automation and big data analytics have immensely empowered financial advisors. Analytics has enabled them to dig deeper into the financial data and information submitted by their clients. 

For example, analytics can now be applied to detect patterns in the saving, consumption, and investing activities and behaviors of their clients. It would help a lot if the financial advisors could be given access to the times when their clients have more money available for investment. Financial advisors can use analytics to find a pattern between the dates when funds become available and the rise and fall cycles of financial markets, stock markets, and other exchanges.

Another example would be the ability to further understand the relationship between when their money for investment becomes available and the various indicators of prices in the financial markets. This may also include stock markets, securities markets, and real estate markets, among others. They can factor in these schedules and timelines in developing their overall investment strategy. This would also be useful for short-term wealth management approaches to enhance the asset performance of their client’s portfolio. 

5. Comply With Rules

Another aspect of asset management that automation technology and software applications enhance is compliance with industry rules and reporting requirements. In the past, financial advisors had to prepare, write, and generate reports about their investment management activities. These were submitted to the securities and exchange authorities to comply with the requirements of the government. 

Moreover, investment management and marketing campaigns were strictly monitored and regulated by the government. This is to prevent questionable individuals and entities from offering extremely risky investment opportunities to get money from individuals. Without regulation and compliance requirements, some individuals would most likely lose their savings in too good to be true and get-rich-quick schemes.


The advent of automation technology and software applications has been immensely beneficial to wealth management entities. Financial advisors have been freed from the numerous tasks that they used to do with the old CRM systems and applications. Most of those other small functions involved administrative tasks. These took up a lot of their time but had very little impact on signing new clients or creating value for their existing ones.

Learn more from business and read How To Choose A Software Bot For Your Business.

John Harper

#1 File Information bestselling author John Harper loves to dispel the myth that smart men & women don’t read (or write) romance, and if you watch reruns of the game show The Weakest Link you might just catch him winning the $77,000 jackpot. In 2021, Netflix will premiere Bridgerton, based on his popular series of novels about the Why Files.

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