What Software Will Financial Advisors Use in 2024?

Financial advisors often juggle a mix of legacy and startup software solutions for everything from wealth management research to marketing and client communication. 

Yet, technology evolves rapidly, creating two challenges for financial advisory firms. Many companies want to use advanced solutions to stay ahead of the competition without the risk of investing in outdated software. They must also consider how each element of their tech stack will work together.

It’s common for a financial advisory or advisory firm to consider what software will bypass these challenges. While each firm requires a unique tech stack, there are trends wealth management advisors can focus on when selecting software for 2024. 

Upcoming 2024 Software Trends

Financial advisors today can leverage a powerful combination of technologies. According to Nitrogen’s 2023 Growth Survey, hyper-growth firms value efficiency when creating their tech stack. As a result, advisory firms are shifting towards specific features to build a seamless workflow for tasks such as automating client emails or better tracking a client’s risk tolerance level. 

Leveraging artificial intelligence

Artificial intelligence (AI) enables advisors to accelerate and scale workflows more efficiently. One of the main benefits of AI-based software is that advisors can boost productivity while freeing up time to work with clients. 

AI isn’t exactly new but continues to evolve. And companies are reporting significant gains as more businesses have applied AI solutions over the past decade. For example, one recent study found that 81% of employees believe AI has improved productivity. 

AI can be used in various scenarios, such as marketing, research, and billing. For example, this technology is now used to generate contracts, proposals, scenario analysis, and similar time-consuming tasks. 

Moving to the cloud 

For many advisors, using cloud-based software is ideal, as they will be able to access portfolio data from anywhere. It is essential to ensure that the selected cloud platform stores data completely. 

Cloud computing offers numerous benefits to businesses and individuals alike. Here are some of the key advantages.

Cloud computing allows for easy scalability, where resources can be rapidly added or removed based on demand. At the same time,  businesses no longer need to invest in expensive hardware, software, or maintenance costs. Instead, they can pay for the services they consume on a subscription basis, resulting in lower upfront costs and predictable monthly expenses.

Cloud-based software enables access to data and applications from anywhere with an internet connection. This accessibility promotes remote work, collaboration, and flexibility for advisors working with clients regionally or nationally. 

Cloud service providers employ robust security measures to protect data from unauthorized access, loss, or theft. They also offer backups and recovery solutions in case of a disaster or hardware failure. 

Most, if not all, financial advisor software will likely move to the cloud. 

Connecting software with integrations

In the past, advisors have used various software that did not share information. As a result, there was significant redundancy. Software that integrates with other solutions proves more adaptable and flexible. Yet, one of the biggest challenges for advisors is poor integration infrastructure for individual software. 

Research by Cerulli & Associates discovered that 94% of practice management professionals believed a lack of integrations hinders productivity. Furthermore, the 2022 InvestmentNews Research Adviser Technology Study found that 57% of advisors felt that a lack of integration was the most significant painting point relating to technology.

Integration capabilities will likely become the top criteria for selecting effective financial advisor software in 2024 and beyond. 

6 Types of Software Financial Advisors Will Use in 2024 (with examples)

The modern wealth management firm can build a tech stack with multiple high-powered software solutions. Below are 6 main types of software every financial advisor should have and some examples of premier solutions. 

1. A centralized growth & engagement platform

One of the biggest game changers in financial advisory software in 2024 is the growth and engagement platform. This software combines client engagement functions with essential portfolio data to improve acquisition and retention. As a result, growth and engagement platforms enable advisory firms to scale their client book efficiently. 

Each platform is built differently. For example, Nitrogen’s Growth and Engagement Platform provides several features to boost client communication and better prioritize communication. The check-in survey allows advisors to determine how clients feel about the market and use that data to prioritize follow-ups. Visual portfolio models and digital proposals give advisors more ways to explain investing strategies to clients. Analytics, Compliance, and Retirement Maps provide a personalized, repeatable process that delights every client, builds trust, increases retention, and covers all KYC regulations behind the scenes.

2. A high-powered CRM

Client relationship management (CRM) software has long been a mainstay for many financial advisory firms. A CRM makes it easier than ever for financial advisory firms to organize their client communications. Advisory firms have many options, as there are both general CRM solutions and those tailored for financial advisors. 

Some popular examples include:

• Salesforce: As one of the most well-known CRMs, Salesforce offers a number of key features for advisors. Advisors can use it to track client communication and AI-powered insights and integrations.
• Wealthbox: This CRM assists financial advisors with a number of tasks, including mail tracking, task lists, calendars, workflow automation, file storage, and report generation.
• AdvisorEngine: AdvisorEngine has CRM features, as well as tools for billing, rebalancing, digital onboarding, client portals, and analytics. 
• SmartOffice: This software is aimed not only at RIAs but also broker-dealers and BGAs. It offers CRM capabilities, contract management, investment tracking, calendar management, and more.  

3. Complaint document managers

Sending and storing sensitive data compliantly is another critical part of an advisor’s tech stack.

Often, Google Drive just won’t do. Instead, many firms employ thorough and secure solutions. Some even come equipped with document libraries, thus helping advisors not only send or store documents but also create them on the fly. 

Some examples of advisor-centric document managers include Laser App.. This solution is solely a document manager and library, with 33,000 ready-to-use form templates and over 70 integrations. 

4. Streamlined financial planning solutions

Financial planning and portfolio management processes can be incredibly time-consuming. Even digitizing the process may not accelerate the actual workflow. However, several options provide advisors with the ability to streamline the financial planning process and improve accuracy. 

There are many examples of different techs:

• LifeYield: RIAs can use this platform for better tax management to optimize retirement income projections, improve tax harvesting processes, and more. 
• FP Alpha: This AI-powered software enables RIAs and advisors to summarize critical data and glean insights from financial documents, such as tax returns, insurance policies, and wills. 
• Income Labs: With multiple features, Income Labs provides tools for retirement planning, tax sourcing, investment lifecycle management, and more.
• eMoney: This platform has several features for financial planning, including account aggregation, client portals, interactive decision analysis, and personalized investment plans. 

5. Automated marketing software

There are several platforms that help an investment advisor with marketing initiatives:

• Snappy Kraken: This tool creates a seamless marketing system, including customized websites with original content and marketing automation. This combination can help financial advisors build better relationships with prospects and current clients.
• White Glove: Built for advisors, White Glove aims to help firms attract and engage with potential clients with a comprehensive marketing approach.
• FMG: This software is a marketing toolkit that drives organic growth and automates marketing campaigns effortlessly.

6. Digitized admin and compliance software

The practice management team can also benefit from an automated workflow. Software like Altruist enables RIAs to digitally open accounts, bill clients, generate reports, and perform other essential tasks. 

Beyond that admin, there are also solutions that target specific wealth management processes, such as retirement planning, compliance, and tax planning. 

Other financial planning software aiming to streamline the planning process are:

• RIA in a Box: This software is an RIA compliance solution that streamlines compliance-centric tasks, such as RIA registration, communications archiving, cybersecurity, and more.
• CircleBlack: As a turnkey solution, CircleBlack offers advisors a single platform for performance reporting, trading, billing, and similar tasks.

Power your advisory firm

Today’s financial planning software offers financial advisory firms and wealth management practices the ability to streamline and improve nearly all their processes. The proliferation of integrations further helps advisors centralize data and speed up, if not automate, time-consuming tasks. As a result, these firms can focus on better client service and growing the organization. 

As a growth platform, the Nitrogen solution is built to work with the best advisory and client management software. Check out our complete list of integrations to learn more about the top tools our clients are using.