The Hidden Cost Of Advisor Tech Sprawl

“Too much of anything is the beginning of a mess.” – Dorothy Draper.

The financial market is flooded with modern tech platforms and tools; choice fatigue is real and is becoming a genuine concern for many advisors. As per a report by Cerulli Associates¹, 71% of financial advisors were frustrated by a lack of integration between tools and applications, pointing to a long-running problem of fragmentation in wealth technology.  

While modern tools and technology can streamline operations, they can also complicate the landscape. Thus comes the phenomenon of "tech sprawl.”  

Tech sprawl refers to the uncontrolled expansion and adoption of multiple technologies within an organization. With so many tools and platforms available, choice fatigue is getting real for advisors. This can lead to a lack of coordination, duplications, inefficiencies, and disconnected systems.  

Just because a plethora of options are out there, doesn’t mean advisors need them all. 

• Waste of time on manual tasks

Disintegrated workflows and data entry systems require advisors to rely on manual tasks despite the adoption of technology.

• Advisor burnout and team frustration

Tech fatigue is real. Managing technology needs is one of the most pressing issues for advisors, with 29% flagging it as a major challenge 1. Rather than adopting every new platform, advisors’ focus should be on choosing the right ones.

• Inconsistent client experience

Disconnected systems take away the benefits of tech that advisors can pass on to their clients. If the tech is not user-friendly, clients won’t be able to navigate decisions beyond investments like tax planning, estate strategies, and insurance decisions.

• Compliance risks

Compliance is one of the most frequently cited challenges that restricts the advisors’ ability to use their technology to the fullest.  

What are high-performing firms doing differently?

• Organizations are eliminating the adverse effects of tool sprawl by:
• Prioritizing the integration of their core tech stack with existing systems to reduce data silos.
• Improving visibility through strategic portfolio management software.
• Consolidating multiple tools and functionalities into one platform.
• Regularly auditing existing technology infrastructure to get rid of redundant systems.

We understand that technology sprawl is an inevitable challenge that advisors face as firms evolve. With Orion’s unified approach, you can:

• Minimize risks.
• Align your firm’s goals more closely with your clients’.
• Consolidate your tech tools.
• Automate the processes.
• Choose the right tech.