How RIAs are attracting AUM with technology

How RIAs are Attracting AUM With Technology

  1. Looking for new markets for growth
  2. Serving portfolio clients and retirement planners.
  3. Complying with the SEC’s landmark Regulation Best Interest
  4. Modern Marketing Mechanisms
  5. Don’t try and solve everything. Pick one solution and follow-through.

How are you leveraging technology to grow your business or find more free time?

A 2019 study of Advisors by Cerulli Associates found a direct link between AUM and technology use. “Heavy” technology-using advisory firms have an average of $238.0 million in AUM compared to $106.3 million for “light” competitors. 

Cerulli found that advisory firms can attract AUM because they spend 34% less time resolving client service issues and have 24% more time on practice management activities. 

Technology does more than just free up time to think about growing a business. During tenuous times like these, we can all benefit from having a little more time with loved ones and friends. 

As I stated before, it can be overwhelming to adopt technology solutions when there are so many propositions. Confusion should not deter advisors from looking for answers but, instead, focus on the most pressing problems. Look for one or two solutions that integrate well with how you run your business already before looking to solve all of them. 

This article will showcase some common problems for financial advisory practices and our solutions. Ask yourself: which issue is most pressing for my business?

Common problems for Financial Advisors of all sizes


Looking for new markets for growth

RiXtrema Inc.’s founded its first software solution around a straightforward problem: helping 401k providers avoid expensive products and pay less for better results.

It’s that simple. Anyone who spends time in the financial services retirement planning space knows that institutional retirement plans are being abused by careless advisors and sold poorly performing products for insane prices.  

Read more about why fee benchmarking is essential for fiduciaries. 

401k Fiduciary Optimizer has seamless graphics and benchmarking tools to show how a 401k plan is losing money on excess fees and could even earn more money with a low-cost optimized alternative. Compare your costs to other advisors in your area and easily prove to 401k plans when they’re being ripped off and need a trustworthy advisor.

Serving portfolio clients and retirement planners. 

Sometimes an advisor’s argument is only as strong as the visuals they use to express it. It is one thing to spend the time researching portfolio risk and acting as a fiduciary to anticipate a client’s risk profile. But, proving to the client that their interest is paramount is another issue. 

Read more about retirement planning solutions.

RiXtrema’s Portfolio Crash Test Pro (PCT Pro) was developed around the risk profile tools that institutional asset managers use to assess investment planning. Advisors never know which argument will be most compelling for a client, so it is best to have a broad array of graphical data tools in your belt. PCT Pro is that toolbelt – giving you analytical tools from risk scenarios to reverse stress testing, retirement planning, and savings plans. 

Complying with the SEC’s landmark Regulation Best Interest

As with your fiduciary duty, the reality is that RIAs are most likely already engaging with clients in a manner that meats Reg-BI’s new standards. (Broker-dealers shoulder a more difficult compliance task). Reg BI, though, is not asking that you change how you engage with clients but asking that you adjust your processes to include better disclosures and show more care. 

Showing is more straightforward than doing. But you don’t want the advising legwork you’ve worked years to cultivate to fail the SEC’s compliance exams. That’s where RiXtrema’s RegBI Optimizer comes in. As they say: the proof is in the pre-prepared pdf disclosure reports. 

Read more about Reg-BI’s challenges for RIAs. 

Vetted by top ERISA regulatory attorneys, it is a seamless software that helps your firm adopt compliance procedures and document your recommendation to prove you’re compliant with the SEC’s expectations  – all for far less than the SEC’s predicted $11k cost per advisor. 


Modern Marketing Mechanisms

Between email marketing, social media, and maintaining a reliable connection with all your clients, there is a lot in marketing to do. 

If you’re working with Larkspur Executive’s email marketing feature (CTML), then you already are seeing the rewards of 21st Century marketing tools. 

Read more about how email marketing converts prospects to clients.

RiXtrema, though, is working to develop another modern marketing tool to help you attract quality contacts to convert to clients. 

Companies across sectors are adopting QuizFunnels because of one simple principle: they give immediate value to new contacts without any commitment. By that, I mean that you market your services by promising self-discovery and attract high-quality leads who seek you out – not the other way around.  

Don’t try and solve everything. Pick one solution and follow-through.

Regardless of what stage of growth your business is in or what challenges face your business, RiXtrema has a solution.  Moreover, we care about your success with the product and dedicate a Client Success Representative to help address any questions you have while getting started.

Take a short 15 minutes – we don’t mind if you eat on the call – and click the banner below to learn more about financial technology that can solve one of your problems. 

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