Ten Best Practices for Buying Technology

Ten tips to help firms purchase the right technology.

The digital tools available to help advisors have never been better, but there are so many of them. It seems like you hear about a new CRM or automated investing platform every week, each with its own set of bells and whistles.

How does an advisor know which products are worth the investment? Picking the most cost-effective option may not give advisors everything they need, while the most expensive solutions may offer more than an advisor could ever take advantage of. Between prospecting new business and maintaining current clients, most advisors hardly have the time to shop around and demo each product. But they also don't want to be stuck with an “out-of-the-box” technology stack from their brokerage or custodian.

WealthManagement.com asked James Capps, chief technology officer at Trust Company of America, about how advisors solve this problem. TCA has 7,500 advisors from more than 200 RIAs on its platform, and recently lured a $7.6 billion firm away from Schwab, thanks in part to its technology offering.

According to Capps, even the best technology won’t work well if it isn’t integrated properly with the advisor’s existing platform. The best technology, he said, enables firms to scale, can add new components as the advisor’s needs change and can be customized to a firm’s unique needs.

To help advisors with the decision, Capps shared the following 10 best practices for investing in technology.

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