RIA software helps Registered Investment Advisers (RIAs) and financial advisory firms track client data, documentation, and sales contact history. With features for investment information, financial goal setting, and compliance, RIA tools are a management solution for multiple investment adviser needs.
A Registered Investment Adviser, sometimes spelled Registered Investment Advisor (RIA), is a firm that provides investment-focused financial advice to clients. Often, an RIA is not a single person who advises but rather a financial institution. RIAs are expected to serve as a fiduciary—an RIA is bound to honor its clients’ best interests by suggesting investment opportunities that will be most financially beneficial to them.
RIAs work to comply with regulations in the financial sector. Standards for financial compliance include:
Traditionally, RIAs have operated with paper documentation and mail. This approach makes it very difficult to track all documents, especially for firms with a large client base. It’s also a security risk: anyone with physical access to papers can ostensibly see the data. RIAs that need to keep their financial documentation in one location, especially to simplify compliance with SEC regulations, benefit from applications designed for their specific operations. They also increase data security by requiring digital authentication for each user.
RIA software includes all digital tools that help investment advising firms manage their client relationships and documentation, maintaining financial forms online rather than worrying about paper and mail. RIA software provides organization for advisory firms and assists them with client self-service — many RIA tools have a service portal through which each customer can view their investment data and financial planning.
Financial planning software allows investment advising firms to offer their clients a single web portal where clients can perform self-service tasks to develop their financial goals. Financial planning software includes features such as:
File transfer and document management tools, such as Google Drive and Dropbox, help investment advisers store and send client financial information safely. These tools often have security features such as encryption so sensitive customer information is less likely to be seen or stolen. Financial advising requires transferring paperwork, so RIAs benefit from a single application that they can use for all documentation.
Investment management solutions provide clients with an overview of their current investments as well as broken-down data about individual stocks and other ventures. Investment advisers can use the software to bill clients, provide them with reports, and help them create a clear investment path. Features of investment management software include:
Risk tolerance tools help advisory firms know each client’s exact comfort level with risk. They can then provide specific investment advice based on the risk each investment will require. Risk tolerance software allows advisers to give clients assessments that gauge the maximum level of risk they’re willing to accept. Other features of risk tolerance software include:
Also read: Best Risk Management Software & Tools
RIA customer relationship management (CRM) software helps RIAs and other financial institutions manage their client interactions and business operations, like invoices and compliance with financial regulations. RIA-specific CRM features include:
Some CRM software is specifically designed for financial institutions; other solutions are general CRM solutions that can be customized for RIAs.
Wealthbox is a CRM solution specifically designed for financial advisers. Wealthbox gives RIAs features like client contact grouping, permission controls, and 256-bit encryption. It also offers integrations with estate planning solutions, financial planning tools, and risk and behavioral analysis software.
Redtail is a cloud-based CRM solution for financial advising firms, offering contact notes with dates, pipeline opportunity views, and a mobile application. RIAs can design their own workflows and clone workflow templates, so they can be reused and modified for another process.
Salesforce is a CRM solution with multiple modules, including the Financial Services Cloud. It provides customer financial profiling, policyholder data, and processes for loan officers and borrowers. Salesforce is a solution for larger RIA firms that have the resources and personnel to customize their CRM.
Is your business considering financial adviser software? Read Best Financial Services CRM Software next.