Investors Expect Digital-First Solutions (But Not All RIAs Heed the Call)

Digital technology and the internet have forever changed the way we share information and network. From social media to a never-ending parade of apps, the last two decades have seen an eruption of user-centric digital tools emerge that are expressly designed to empower individual choice and decision-making. Digital communication is now more interactive and actionable than ever. So why are alternative investments still mostly done on paper?

You would think digital solutions would save your local postal person or FedEx driver from having to deliver additional reams of letters and other kinds of paper documents. But many RIA firms and their advisors continue to enlist couriers into their alternative investment workflows, maintaining the material clutter and manual processes that so-often result in costly NIGO (not-in-good-order) errors.

It doesn’t have to be this way.

In fact, a recent Franklin Templeton report finds that many RIAs welcome technologies that enhance client-centric activities such as onboarding and client communications, convinced that digital tools like these can capture the greatest return on investment. The more than 150 RIAs interviewed for the report — most of which serve high net worth clients — cited pandemic-related disruptions as a key reason many of them have started to adopt new, innovative digital solutions.

Financial professionals who use electronic subscription processing for alternative investments are finding that it saves them time and money — for both them and their clients. They also find that this technology:

• Helps advisors stay in sync with investors’ digital-first expectations
• Streamlines the signing cycle as well as the closing process
• Operationally improves RIA firms’ alts workflows
• Creates transactional transparency with sponsors at every stage
• Easily diversifies client assets into multiple offerings

Furthermore, pivoting to technology can potentially help advisors stay in good stead with clients. What investor wants to hear that their investment cycle has lengthened by weeks or months because of NIGO errors? Manual workflows create excess downtime to begin with. Going digital keeps investments moving.

Altigo can help streamline your firm’s alternative investment workflows and ease reliance on snail mail. Schedule a demo today for more information.