Unlock Scalable Growth and Deepen Client Relationships with a TAMP

As the financial advice model continues to evolve and shifts toward a holistic and planning-centric approach, advisors are looking for ways to spend more time working with clients and less time filling out paperwork. Or selecting individual investment components. Or researching a strategy provider. Or rekeying information from one data system to another. Or doing all of the above, for every one of their clients.

Create Space in Your Practice with a TAMP

One way for advisors to set themselves up for growth is through partnering with a TAMP. A turnkey asset management platform (or program, depending on who you ask), also known as a TAMP, enables advisors to outsource the tasks of investment management. TAMPS offer a lot more than automation and streamlined processes – they can provide an entire team of specialists to inform and guide a sales regimen. A TAMP might include everything from trade desk services, model portfolios, portfolio oversight, due diligence, operational efficiencies, compliance, and many of the tasks that come with running an advisory business.

But what outsourcing all of those things does is create space in an advisor’s practice. A space that allows for more time to spend on client relationships and a space to be filled with new, scalable business.

Let’s Start at the Beginning

TAMPs originated in the late 80s/early 90s (depending on who you ask). Early pioneers were firms like Brinker Capital and SEI and they offered portfolio construction and oversight, making ongoing adjustments as needed. In the early days, they offered outsourced portfolio management along with back office operational services that enabled advisors to spend more time on business building and clients.

That service model expanded over the next few years to where advisors could outsource nearly all aspects of investment management and administration to a TAMP. Services offered included asset allocation, manager and fund selection, trading, performance reporting, billing, and account administration. This gave advisors even more time back to focus on their clients and their business.

The Evolution of Outsourcing

TAMPs have evolved significantly since their beginning days. Today, the market includes both traditional TAMPS and newer, more tech-forward TAMP supermarkets that offer advisors access to an array of portfolio strategists, whose model portfolios are on the platforms, as well as platform services like trading, performance reporting, billing, and account administration.

Advisors can leverage TAMPs to support an end-to-end client experience - from researching and vetting the right strategist(s) for a client, running investment proposals, opening new client accounts and servicing those clients after the sale.

Partnering with a TAMP

As the effects of the pandemic slowly continue to recede, it is clear that the industry has experienced meaningful change. Many clients require more – at least different – levels of engagement after an exhausting nearly 3 years in the market and still facing uncertainty. Now, maybe more than ever, advisors need the insights of market experts and the expertise of a seasoned investment team behind them. Technology has been thrust into the spotlight and if your tech isn’t seamless and making life easier, then it’s another set of tasks for advisors to do.

Here are 3 ways that partnering with a TAMP can help you drive growth:

1. Expand Your Expertise

A TAMP offers access to both a range of investment management services and a complete team of specialists behind those services to help support your sales process and approach. TAMPs focused on growing their own business are continually finding ways to integrate and offer new applications and capabilities, which enables users to offer more services across the financial spectrum.

That means that you could expand your offering to include insurance, credit, trust services, generational wealth services, cash management or other services to boost your own offering – which may help you ultimately attract new investors and increase wallet share of existing clients.

2. Deliver on Your Value Proposition

As your business grows, so too, does the amount of work necessary to effectively deliver the best experiences for clients. One of the most tangible benefits of outsourcing is the time that advisors are able to free up by stepping out of the many responsibilities of managing client portfolios.

 Time spent on market research, provider research, portfolio construction and management, paperwork, and reporting can now be refocused and reallocated to what matters most in your business - whether that’s working on your business strategy and development, spending more time with existing clients, or prospecting for new clients.

3. Unlock Scale

Growing your business is a balancing act between taking on more clients and being able to deliver the best experiences to them. Advisors bogged down in investment management duties and other operational business are limited in the new business they can take on. Managing too many clients can lead to burnout or worse, unhappy clients.

Leveraging the scalability of a TAMP enables you to outsource the parts of your business that can benefit from expert providers, opening the lanes for growth and new client acquisition.

As the wealth business becomes more personal, more planning-focused, and more nuanced, managing clients requires more time and outsourcing becomes even more necessary to deliver better outcomes and to keep growing.

Learn more about how Orion can help you unlock scalable growth and deepen your relationships with clients.

0134-OPS-1/18/2023