Wealth management technology platforms are foundational to advisory firm operations. The right platform enables advisor efficiency, client experience, and business scalability. The wrong platform—or poorly executed transition—creates operational burden, client dissatisfaction, and competitive disadvantage.
This guide provides a strategic framework for wealth management platform selection, addressing how firms should evaluate options and manage transitions.
The Platform Landscape
What Platforms Include
Modern wealth management platforms integrate multiple capabilities:
Core capabilities:
- Portfolio management and rebalancing
- Performance reporting
- Trading and order management
- Account aggregation
- Document management
- Client relationship management
Advanced capabilities:
- Financial planning integration
- Risk analysis
- Proposal generation
- Client portal and mobile access
- Marketing and communications
- Compliance and regulatory support
Integration ecosystem:
- Custodian connections
- Data feeds and aggregation
- Third-party tool integration
- Reporting and analytics
Platform Categories
Custodial platforms: Technology provided by custodians (Schwab, Fidelity, Pershing) to advisors using their custody.
Independent platforms: Third-party platforms (Orion, Black Diamond, Tamarac) working across custodians.
All-in-one solutions: Integrated platforms combining wealth management with CRM and planning (Salesforce, Redtail integrated solutions).
Enterprise platforms: Large-scale solutions for institutional wealth managers (Addepar, SS&C Advent).
Platform Selection Framework
Step 1: Needs Assessment
Before evaluating platforms, understand requirements:
Firm characteristics:
- AUM and projected growth
- Number of advisors and support staff
- Client types and service levels
- Investment philosophy and approach
- Current technology environment
Capability priorities:
- What capabilities are essential vs. nice-to-have?
- Where are current pain points?
- What capabilities enable strategic direction?
- What are client experience requirements?
Integration requirements:
- Custodian relationships (current and potential)
- Financial planning tools
- CRM systems
- Other technology in use
Operational considerations:
- Implementation capacity and timeline
- Budget constraints
- In-house technology expertise
- Change management capability
Step 2: Market Scan
Understand available options:
Research approaches:
- Industry publications and rankings
- Peer firm experiences
- Consultant guidance
- Vendor demonstrations
Initial screening:
- Fit with firm size and complexity
- Custodian compatibility
- Basic capability match
- Price range alignment
Narrow to 3-5 candidates for detailed evaluation.
Step 3: Detailed Evaluation
Deep assessment of shortlisted platforms:
Functional evaluation:
- Detailed capability review against requirements
- Workflow and user experience assessment
- Reporting and customization options
- Integration capabilities
Technical evaluation:
- Architecture and infrastructure
- Security and compliance
- Performance and reliability
- Data management and portability
Vendor evaluation:
- Company stability and trajectory
- Client references (similar firms)
- Service and support model
- Product roadmap and innovation
Total cost analysis:
- Implementation costs
- Ongoing subscription/license fees
- Integration costs
- Training and change management
- Hidden costs (data migration, customization)
Step 4: Selection Decision
Making the final choice:
Decision framework:
- Weighted scoring against requirements
- Reference checks with peer firms
- Negotiation on pricing and terms
- Implementation planning review
Contract considerations:
- Service level agreements
- Data ownership and portability
- Termination provisions
- Implementation commitments
Implementation and Transition
Implementation Planning
Setting up for success:
Project governance:
- Executive sponsor
- Project manager (internal or vendor)
- Cross-functional team involvement
- Clear decision authority
Timeline development:
- Realistic timeframes for each phase
- Resource availability
- Business cycle considerations
- Contingency planning
Risk identification:
- Data migration risks
- Integration complexity
- User adoption challenges
- Client communication needs
Data Migration
Often the most challenging aspect:
Data assessment:
- Current data location and format
- Data quality issues
- Historical data requirements
- Reconciliation approach
Migration execution:
- Data extraction and transformation
- Validation and testing
- Parallel operation period
- Cutover planning
Change Management
Technology change is people change:
User preparation:
- Training programs for different roles
- Super-user development
- Documentation and resources
- Iteration and feedback
Client communication:
- Proactive notification of changes
- New capability orientation
- Portal and access transition
- Service continuity assurance
Key Takeaways
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Requirements first: Deep understanding of needs should precede vendor evaluation.
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Total cost matters: Look beyond subscription fees to implementation, integration, and transition costs.
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References are essential: Talk to similar firms using the platform. Vendors show the best cases; references reveal reality.
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Implementation is the hard part: Platform selection is just the beginning. Implementation determines actual value.
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Plan for change management: User adoption determines ROI. Invest appropriately in training and support.
Frequently Asked Questions
How often should we re-evaluate our platform? Major re-evaluation every 3-5 years, or when significant firm changes occur (growth, acquisition, strategy shift). Continuous monitoring of platform evolution.
Should we use our custodian's platform or an independent solution? Depends on needs. Custodial platforms offer simplicity and often lower cost; independent platforms offer multi-custodian capability and often more advanced features. Multi-custodian firms typically need independent platforms.
How long does platform implementation take? Typically 3-9 months depending on complexity, data migration scope, and integration requirements. Factor in parallel operation and transition time.
What's the biggest implementation risk? Data migration complexity and user adoption. Allow adequate time for data validation and training.
Should we implement all capabilities at once or phase? Phased implementation reduces risk but extends timeline. Core functionality first; advanced capabilities in subsequent phases often works well.
How do we involve advisors in selection? Advisor input in requirements definition; advisor participation in demonstrations; pilot group for evaluation. Balance broad input with focused decision-making.