Investment Operations

Aligning Custodian Priorities with RIA Technology Use

Aite Group expects the regulatory landscape to help accelerate the development of more collaborative client-facing technologies, which will better align with advisor needs. 

Custodians continue to focus on enhancing their long-term value proposition in an environment in which the economics of transactions, investment products, and advisory models are compressing. In the midst of this economic upheaval in wealth management, custodians and vendors are overlooking the immediate problems that advisors have with existing technology and how they are spending their time. Aligning Registered Investment Advisor Technology Use and Custodial Priorities, the newest Aite Group report, explores advisor demographics, time allocation, the use of business applications, technology pain points, and potential solutions.

“Custodians are focused on long-term system enhancements to boost their value proposition, but they are overlooking the immediate problems that advisors have with existing technology,” states Greg O’Gara, senior analyst at Aite Group. “As custodians have pursued increased platform flexibility for vendor integration, integration of technology has emerged as the number one advisor pain point,” he explains.

Aite said the analysis in this report leverages the Aite Group online survey of 400 U.S. financial advisors fielded in April through June 2019. Aite Group focused on registered investment advisors, excluding dually registered advisors. The survey questionnaire targeted a wide range of financial advisor attributes. The report is also supplemented with prior Aite Group findings as they relate to advisor technology.