Why Cloud Tech Is Central to Wealth Management Success
By Cindy Griffin, Financial Services Vertical Marketing Specialist at Smart Communications
Modern, integrated technology is no longer optional; it’s how wealth management firms win over elite advisors. Mergers and acquisitions activity in wealth management is booming, with a record 272 transactions announced in 2024 and 75 announced in the first quarter of 2025.
These firms will succeed by taking advantage of economies of scale and Assets Under Management (AUM) growth. But real success hinges not just on scale or AUM. For acquiring firms, the ability to attract and retain top advisor talent is among the most valuable assets after the deal closes.
Why Cloud Tech Matters More Than Ever
In addition to firm consolidation, the pool of financial advisors is shrinking. According to Cerulli Associates, the number of advisors in the U.S. was essentially flat in 2023 and over the next decade, more than 100,000 advisors – or approximately 37.5% of the industry – plan to retire. With a contracting pool, advisors can be more selective about where they choose to practice. The increased competition for talented advisors means wealth management firms must use cloud technology to stand out.
The value-add that advisors provide is excellent client service, and intuitive, effective technology that makes the client experience more efficient can help advisors grow their business. The more time advisors dedicate to what matters most to each client, the higher the trust in the relationship. For these reasons, advisors want technology that minimizes administrative work and maximizes time to focus on their value add to clients.
Wealth management firms that offer a seamless tech experience create less disruption and more opportunities for their advisors. At the end of the day, technology can be a deciding factor in whether talented advisors stay or leave.
Common Pitfalls of Technology in Wealth Management
Legacy systems, clunky workflows, and poor integrations frustrate advisors. For example, a firm uses a PDF-only onboarding form collecting know-your-customer (KYC) information. The best-case scenario in this PDF-only situation happens when the client receives the form and they’re able to fill it out correctly the first time and return it via email.
However, this scenario is unlikely and not secure since personally identifiable information (PII) is being passed through the form. More likely is that with a lot of back-and-forth between the advisor and the client, most of the information is collected and manually added into the firm’s systems.
At this point, no one is happy. Advisors feel that administrative work has cost them important client-facing time. Plus, clients begin the advisor relationship with a frustrating and drawn-out onboarding experience. Wealth management firms risk churning advisors and clients if technology is an impediment to a good client experience.
Technology Attracts and Retains Talent
The right technology creates an advantage in attracting and retaining talented advisors. How can a wealth management firm ensure that it’s using the right technology?
- Invest in technology that is API-friendly or has established integrations and is scalable for different advisor workflows.
- Involve advisors in technology decisions and treat them like internal clients.
- Communicate clearly how the technology roadmap will improve advisors’ work day-to-day.
Research has shown that advisor practices that are heavy users of technology are higher-growth practices. Cleary, firms that lead with advisor-friendly technology can gain a strategic edge.
Smart Communications Helps Develop a Technology Advantage
Smart Communications helps wealth management firms develop their technology advantage with SmartIQ™, a low-code technology solution that makes automating data collection easy:
- Manual forms are transformed into online, mobile-friendly, intuitive interviews to collect data.
- Data collection is secure and scalable; data becomes a two-way conversation between the advisor and client.
- Pre-built connectors and a flexible API architecture ensure seamless integration into the existing tech stack.
SmartIQ offers a digital client experience for complex advisor workflows like client onboarding, annual KYC information collection, and more. What once was a major administrative burden to advisors becomes a competitive advantage to attracting and retaining advisors. Investing in the right technology isn’t just smart infrastructure. It can be the key to unlocking advisor loyalty, performance, and long-term growth.
Ready to learn more?
To find out how you can leverage cloud tech in wealth management to improve data collection processes and maximize your advisors' time, request a demo.
About the Author
Cindy Griffin is the Financial Services Vertical Marketing Specialist at Smart Communications. She has more than 25 years of experience in financial services marketing and business development, performance analysis, product and risk management, and compliance integration. Cindy has broad knowledge of the financial services space having worked for institutional investment managers, retirement services providers, and wealth managers in a variety of roles. In addition, Cindy worked in business development for a software provider with a primary focus on the financial services vertical.