Five tips to make the right technology choices

Voyant UK vice president Bob Freeman explains why the right technology partner is essential for your business.

The bandwagon of advice and consultancy helping firms to transition to a post-RDR model continues to gather pace as the 2013 deadline nears. Much debate continues over the delicate matter of transitioning clients and indeed entire adviser firms to a fee based model. Justification of these fees and the need to find cost-effective methods of implementing ongoing service and client communication is right at the core.

While technically somewhat removed from the real ‘sharp end’ decisions and challenges, technology suppliers are a vital stakeholder in the future of regulated, independent advice. So while some sceptics would argue that the increasing voice of debate from suppliers is nothing more than a belated attempt to jump on the bandwagon, the truth is that with both product providers and platforms as integration partners and distributors (and clients) as end users, the technology supplier is perfectly positioned to clarify and provide objectivity on this big topic matter.

As demonstration of this, there are five clear examples which can be used to illustrate not only the important role which technology providers can play but equally the absolutely fundamental role which technology itself has in driving the justification of fees and the maintenance of regulatory-led service post RDR.

While these five points are by no means exhaustive, nor prescriptive, they do serve as a powerful illustration of the importance of choosing the right technology partners and solutions – and showing some of the potential perils and pitfalls of not doing so.

1. Business first

Most financial advisers are not technology experts, nor need they be. However, too many seem to buy software on almost on an impulse – or scattergun – basis: ‘that looks good, let’s give it a try’. Quite simply, the first principle should be to think ‘what does this software do for my business?’

The cogent, joined up business or business transition plan should come first. Once this is clearly established and articulated, choosing the right software packages to complement and supplement it will become 100% easier!

2. Value, not price

Cheapness is not an end unto itself; conversely buying the most expensive solution does not guarantee you are buying the right solution. It is back to what fits best for your business. You need to make both a strategic and commercial case for buying technology.

If you get it right, and the software solutions you embed into your practice are instrumental (as they should be) in enhancing your service to existing clients and also attracting new clients, then the cost will be more than justified.