In this edition of WealthTech Unwrapped, Ned engages in a conversation with Adrian Johnstone, the CEO of Practifi. Tune in as they delve into data management, the hurdles posed by the present technology landscape, and the implications for future Fintech developments.
According to Adrian, the fintech landscape offers numerous specialized solutions, each addressing specific aspects of the overall problem. As a result, financial advisors often end up purchasing multiple pieces of technology to handle different narrow issues. Unfortunately, these technologies operate independently, leading to potential process-related challenges and increased expenses. To tackle this problem, Adrian emphasizes the importance of stepping back and considering the bigger picture.
However, the average advice firm lacks a Chief Technology Officer (CTO) to make informed decisions in this regard. Consequently, they often turn to third-party consulting services. Nevertheless, Adrian warns that the consulting market may be influenced by various technology providers, making it challenging to receive truly independent advice.
Another critical issue highlighted by Adrian is data management. He stresses that every system relies on data to be effective and that it must be properly organized and aggregated for advisors to provide meaningful experiences to their clients. Interestingly, highlights that there is limited planning and discussion around sleeper issues such as the transfer of intergenerational wealth within the industry. If the data is not well-sorted and maintained, firms may lose value when transitioning to the next generation. In essence, having well-organized data enhances the overall worth of the business.