What Does It Take To Build A Great Wealth Management Tech Stack?

How RIAs and dual registrant enterprises can create and maintain best-in-class tech platforms

The wealth management industry’s embrace of technology has reaped many rewards, including creating scale, driving efficiencies, and optimizing client outcomes. Research validates what anecdotal evidence suggests and what financial professionals see every day: According to Cerulli, technology use within a practice has a direct correlation with that practice’s productivity. Advancements in artificial intelligence will only see the positive impacts of technology grow exponentially.

Still, challenges remain, even for firms that have gone all in on strategically investing in an effective tech stack. Because of rapid-fire innovation in the space, tech is constantly evolving, and addressing obsolescence is expensive. There are often integration issues when using new technology in parallel with legacy systems. “RegLag” – time between a technology’s introduction and its regulatory governance – constrains efficacy.

Additionally, there can be a steep learning curve that limits users’ ability to utilize the technology fully. How should wealth management firms formulate and execute a tech stack strategy in such an ecosystem?

By the sheer breadth of its application across all elements of the wealth management framework – from marketing to portfolio construction and account opening to data analysis – technology has broadened the horizons for our industry and its ability to better serve the aspirations of both clients and advisors. And the possibilities for the future seem endless for firms with a deliberate, forward-looking approach.

Three Perspectives From Three Industry Experts

To shed more light on this important topic, I spoke with three experts on the front lines of wealthtech to learn about how firms can strategically develop and execute their tech stack strategies and investments to elevate support for advisors and their ability to serve clients:

• Hilda Wong-Doo, Founding Partner, Technology Strategy & Delivery, GreenLine Consultants, which provides strategic technology solutions advice and implementation expertise to the financial services industry. GreenLine is a Strategic Partner Firm of the Ascentix Partners Network
• Dan Newhall, Principal, Lone Willow Advisors, a provider of strategic consulting and brokerage services to RIAs, specializing in M&A, succession planning and capital raising
• Mike Overdorf, President and Founder, Sycamore Company, which delivers data and functionality to retail and institutional advisory firms for commission processing, compliance supervision surveillance and data analytics

Sander Ressler: Are there universal best practices for independent wealth management enterprises when it comes to developing their technology strategy, selecting the tech solutions that should be part of their future platform, and successfully implementing all of it? How do these best practices differ between RIA firms and enterprises that encompass IBD and RIA platforms?

Hilda Wong-Doo: As independent wealth management    firms aim for growth, a tech strategy rooted in advisor and client needs that includes service goals is essential. Technology advances rapidly, often outpacing regulatory    and industry guidance, while cybersecurity remains a top concern. The key is to build a strategy based on guiding principles that prioritize minimizing frustration and delivering superior experience for clients, advisors and support teams. A holistic data strategy is also a vital foundation for that strategy — particularly with AI.

When selecting solutions, consider your firm’s size and long-term growth objectives. Invest appropriately, remembering to include the costs of staff required to implement and manage the long-term project. Smaller firms, in particular, should consider leveraging existing capabilities offered by custodians and providers to streamline implementation.

Execution of your strategy requires consistency and flexibility. Strong program management, supported by senior leadership, is essential in enabling firms to adapt quickly and stay aligned with their strategic objectives.

Firms must be prepared to “expect the unexpected” and adapt their technology approach as needs evolve, without losing sight of what matters most: delivering outstanding client and advisor experiences.

Successful implementation depends on effective change management, including clear internal and external communication.

For hybrid firms, complexity increases. Factors such as introducing brokers, custodial choices and multi-channel support create more moving parts. Nevertheless, maintaining a focus on client service, advisor efficiency and operational excellence remains key. Many firms find outside expertise valuable for evaluating solutions that align with their strategic “north star” and growth goals, ensuring their technology remains innovative, agile and supportive of future success.

SR: What are the most important AI-driven tech solutions that RIA firms should prioritize, and how    can they do so in a cost-efficient and scalable manner? Why do many RIA firms owned by major private equity firms, despite having access to significant capital resources, continue to be late adopters of innovative technologies?

Dan Newhall: RIAs should prioritize client-facing personalization tools, AI-enhanced portfolio management and workflow automation. Generative AI can streamline client communication and financial planning, while machine-learning models improve risk analysis and investment recommendations.

On the operational side, AI-driven compliance monitoring and document automation cut costs and reduce regulatory risk. Firms can implement these solutions cost-efficiently by leveraging modular SaaS platforms rather than building in-house systems, starting with low-hanging, scalable use cases.  For example, this could include automating reporting or lead qualification, among others.

Despite abundant capital, many PE-backed RIAs remain late adopters due to cultural inertia, legacy systems and integration complexity. Private equity firms often focus first on roll-up scale, EBITDA optimization and advisor retention, with technology innovation deprioritized relative to near-term financial metrics.

Furthermore, RIAs operate in a trust-driven industry – leaders can be risk-averse, fearing disruption to client relationships or compliance missteps. In many cases, decision-making is fragmented across acquired firms, which slows down adoption. As consolidation matures, PE sponsors are beginning to push more aggressively for enterprise-level tech modernization, but the gap persists between capital availability and execution readiness.

With AI moving at light speed, simply keeping the status quo when it comes to technology will render RIAs obsolete. Having solutions that work within the existing tech ecosystem is more important than ever. Because technology has evolved to enhance rather than replace, implementing these solutions is more digestible than ever. It’s a matter of implementation, adoption and, most importantly, a cultural shift championed by effective leadership.

SR: You’re an ardent proponent of having ‘pristine data’ for independent wealth management    enterprises. How do you define pristine data, and are there any stand-out examples of back-office data risks for enterprises that have a broker-dealer platform?

Mike Overdorf: When talking about “pristine data,” I’m referring to data that is error-free, consistent and accessible across systems within a wealth management enterprise. Firms often find themselves operating with disparate systems and siloed data. From compensation to compliance to advisor and client management, pristine data is critical. It enables enterprises to eliminate duplication, reduce manual input and create a single source of truth that advisors, operations teams and firm leaders can rely on to make strategic decisions.

The risks of failing to get pristine data right are substantial, particularly for enterprises tied to broker-dealer platforms. A common issue is legacy systems with outdated information that doesn’t sync with new CRMs or other tools in the tech stack. That disconnect can lead to errors in compensation, compliance reporting gaps and even regulatory risk. Without pristine data, it becomes much harder to demonstrate to regulators that the enterprise is meeting oversight obligations.

Making sure data is pristine from day one is more than just an operational concern. It’s critical to growth and risk management. Enterprises that invest early in pristine data and strong data governance can avoid expensive remediation later. They’ll also be positioned to scale more efficiently. In today’s data-rich environment, pristine data is much more than a back-office aspiration. It has become a front-line competitive advantage.

Sander Ressler is Managing Director of Essential Edge Compliance Outsourcing Services, LLC, a strategic consultancy specializing in compliance and regulatory affairs for broker-dealers and registered investment advisers (RIAs).  Essential Edge is a Strategic Partner Firm of the Ascentix Partners Network, the alliance of elite consultancies with a shared expertise and commitment to driving wealth management enterprise growth.