One of the biggest challenges advisors face when going independent is finding technology solutions that work well for both their business and clients.
With at least 50 different portfolio management software options out there to choose from, simply settling on a software solution for managing client portfolios and assets can be a time-consuming endeavor.
Before we discuss the key features that advisors look for in a portfolio management tool – and the unique aspects of Altruist’s portfolio management software that benefit advisors – let’s examine what this software does, how it works, and why advisors use it.
What's portfolio management software for financial advisors?
Portfolio management software is a digital tool designed to aid advisors in managing and optimizing client investments. The software provides an automated, organized, and highly efficient approach to onboarding new clients, managing assets, generating reports, and facilitating client communication.
The history of these tools traces back to the dawn of computer-assisted finance. Still, it's their evolution and increasing sophistication that's made such software invaluable – particularly as asset management has become an increasingly digital experience in the modern finance industry.
In the past, RIAs often looked to multiple software solutions to cover various aspects of onboarding, portfolio management, performance reporting, and client communication. Now advisors are seeking out all-in-one solutions to simplify their tech stack and help to manage and scale their firms more effectively.
Essential features of portfolio management software for RIAs
Here are the main features that advisors look for in portfolio management software:
- Swift Onboarding: Great software should create a smooth and quick onboarding process for new clients, including the opening of new accounts and transferring of assets.
- User-Friendly Interface: A clear, intuitive interface will make learning and using the software easier for both advisors and clients.
- Integration Capabilities: Software that integrates seamlessly with (or can replace entirely) other financial tools in your tech stack is crucial for holistic management.
- Robust Reporting and Analytics: Look for software that offers a wide range of customizable reporting options and robust analytics.
- Scalability: Software should be adaptable to your firm's unique needs and easily scalable to accommodate future growth.
Benefits of using portfolio management software
The right software can transform a business – simplifying what used to be complicated and accomplishing in minutes what used to take hours (or days). Here are just a few of the benefits advisors see in good portfolio management software:
1. Enhanced Efficiency and Productivity
Streamlining tasks like onboarding, account setup, rebalancing, and performance tracking frees up valuable time, enabling advisors to focus more on client relationships and strategic decision-making.
2. Improved Client Communication
Many software systems include client portals to improve transparency, enhance client-advisor communication, and overall elevate the client experience.
3. Streamlined Reporting
Built-in features for generating client reports and tracking performance allow for straightforward reporting. Attractive reporting designs make the information simple to present and easy on the eye.
Altruist portfolio management software
Altruist includes financial advisor portfolio management software as part of the diverse suite of tools on its platform, providing RIAs with a versatile and scalable solution that easily integrates with the rest of their workflows.
Our portfolio management solutions have proven especially effective for RIAs looking to build high-efficiency, digital-first businesses. In the following case study, we spoke with Keith Kolomichuk about his firm, Kolo Capital, and how Altruist has been integral to the firm’s growth.
Keith Kolomichuk launched Kolo Capital during the pandemic, using Altruist as the firm’s custodial solution.
As a remote-first and upstart RIA, Kolo Capital needed a partner that could help the firm start and scale with ease. Altruist fit the bill with its pricing model, swift onboarding and account opening, seamless portfolio management, and customer service.
With Altruist, Keith and the Kolo Capital team can spend more time on essential conversations with clients and can save time on operations by using the RIA portfolio management software.
Keith Kolomichuk had a whirlwind entry into finance, taking on a traveling role at a mortgage bank just before the 2008 crisis. “It was a wild time to join the financial services industry,” Keith says. “[Everything] was changing on a moment-by-moment basis.”
Several years later, Keith moved into a private banking role and quickly realized he was more interested in being a financial advisor because he was drawn to relationship management. “We made such an impact on helping people frame a decision in their life,” Keith shares.
He also notes that “options to move up in the private bank were pretty limited at that time” due to industry certification and education standards. “I came from not a whole lot,” Keith says. “I didn't have a college degree, my dad has a GED, and my mom barely graduated high school.”
Determined to stay in finance and driven by “connecting with humans on a deeply personal level,” Keith made the leap to become a financial advisor with technology for financial advisors in an established large firm.
Soon after, the COVID-19 pandemic hit and remote work became the norm. That’s when Keith’s perspective on what it takes to run an RIA began to shift.
“It became apparent that there just was no need to be part of a big firm,” Keith shares. “It wasn’t doing anything I wasn’t going to be able to do on my own.”
By August 2021, Kolo Capital was up and running, with Altruist serving as the firm’s custodial solution.
