Although the industry often tends to gauge the success of a firm's technology platform by how much money is spent on it, a study from Charles Schwab Advisor Services finds that independent registered investment advisers who actively manage their tech services generate more income, while also spending considerably less money on it.
The study, Integrating Technology into Your Practice: Keys to Improving Productivity, reveals that advisers who take a strategic approach to technology spend half as much on technology and are twice as profitable compared to the biggest technology spenders from firms that take a passive approach to managing technology.
The study also finds that RIAs who embed technology into their business and operations realize greater productivity and profitability gains, in addition to lower client-acquisition costs.
