Operations Teams, Review These 4 Questions Before You Audit Your Tech Stack!

By Cameo Roberson

The shiny-object syndrome plagues many financial advisory firms at some point in their business journey. They can get distracted by the latest new technology. Yet, technology is necessary because it provides much-needed efficiencies and economies of scale. These benefits are maximized when firms periodically evaluate their technology solutions.

Before you go down the rabbit hole of possible solutions, changes, or adjustments, it’s important to evaluate your existing technology in the context of your business needs. If you’re questioning whether your tech stack “stacks up,” review these four questions with your operations team before auditing your existing technology suite.

1. Is Your Technology Stack Aligned with Your Business Goals and Objectives?

Business goals and objectives should lie at the core of evaluating the effectiveness and relevance of your firm’s technology infrastructure. A well-aligned technology stack serves as a strong foundation for your advisory business’s growth. It’s also a strong indicator of future valuation when each component of your technology integrates well with the other components and your operations team works collaboratively.

To assess your tech tools and systems, begin by identifying your business goals and objectives—both short term and long term. Then, evaluate how your technology stack enables and supports these goals. Does it provide the necessary functionality, capabilities, and features? Is it flexible and adaptable to accommodate future growth and changes in your business landscape? When was the last time your technology suite had a major overhaul?

Examine how well your technology stack integrates with other essential financial advisory systems and platforms (discussed further in point 3 below). Seamless integration ensures smooth data flow and onboarding workflows and efficient client service while helping to eliminate unnecessary bottlenecks. It enables different parts of your financial advisory business to work together, maximizing productivity and minimizing friction.

Regularly auditing your technology stack for alignment is crucial as your business evolves, even when your firm is in its first few years of growth when technology needs aren’t robust as they’ll be later. As your goals and objectives shift, your technology needs may change as well. For example, you may need to shift from free to paid versions of software if you’ve added team members or an expanded client base demands more service.

2. Does Your Technology Stack Provide Adequate Security to Protect Your Business Data and Your Client’s Data?

Protecting sensitive information is necessary to maintain the trust of your clients, comply with regulations, ensure compliance, and safeguard your business from potential breaches or cyber threats. Cybercriminals are getting more creative with their attacks. You don’t want to be on the losing end of an attack that compromises your business data or your client’s data.

Evaluate the security measures in your technology stack. Are there robust encryption protocols to protect data both at rest and in transit? Assess the authentication mechanisms used to ensure authorized access to sensitive information and prevent unauthorized breaches.

Examine your data backup and disaster recovery mechanisms. Are regular backups performed, and is data redundancy ensured? Robust backup and recovery procedures minimize the risk of data loss in the event of a system failure, cyberattack, or natural disaster.

Additionally, evaluate user access controls and permissions. This includes access by both employees and outsourced providers. Are user privileges assigned based on the principle of “least privilege”? Ensuring that individuals have only the necessary access—and nothing more—reduces the potential for unauthorized data access or misuse.

Regularly auditing the security measures of your technology stack is crucial to identify any weaknesses or vulnerabilities. By implementing and maintaining adequate security measures, you can maintain compliance and instill confidence in your clients regarding the safety of their information. (For more on cybersecurity, see “Financial Advisors Need to Embrace Zero-Trust Cybersecurity.”

3. How Well Does Your Technology Stack Integrate with Other Systems and Platforms?

Integration with other systems and platforms highlights the importance of seamless connectivity and interoperability within your technology framework. Efficient integration allows for the exchange of data, smooth workflows, and improved collaboration across various systems. Assessing integration capabilities is crucial to avoid information silos and maximize operational efficiency for in-office and virtual environments.

Start by evaluating the existing integrations within your technology stack. Are there any limitations or gaps in connecting different tools or platforms? Identify areas where data transfer or communication may be impeded, hindering productivity or decision-making processes. (If you’re not a tech whiz and discover you want to establish integrations, there are several providers I know who work with financial advisory firms. Reach out if I can help get you connected.)

Next, look at the scalability and adaptability of your integrations. Can your technology stack easily accommodate new systems or platforms as your business grows? Scalable integrations ensure that you can seamlessly incorporate additional tools or solutions without disrupting your existing service workflows.

Furthermore, assess the level of automation achieved through integrations. Can data be synced in real time, or are manual interventions required? Some manual interventions are unavoidable, but the more automated the integrations, the smoother the data flow and the more time and effort saved on the back end. Lastly, evaluate the reliability and stability of your integrations. Do they consistently function without major disruptions? Reliability is essential to ensure uninterrupted operations and minimize potential downtime or data inconsistencies.

4. Are You Maximizing the Scalability and Efficiency of Your Technology Stack?

Maximizing scalability and efficiency will help to optimize the performance and capacity of your technology infrastructure to meet the demands of your business. Scalability refers to the ability to expand or adapt the technology stack as your business grows, while efficiency requires using resources effectively and minimizing waste.

For scalability, consider if your technology stack can handle increased data volume, user demands, or changes in your operations. Are there limitations or performance issues that may hinder your ability to scale smoothly, or will you experience significant disruptions or costly migrations if your firm grows or changes?

To assess efficiency, look at how well your technology stack streamlines processes and eliminates bottlenecks. Are there redundant or outdated tools that can be replaced or streamlined? What technology tools have you purchased but don’t use anymore? Look for opportunities to eliminate technology that’s no longer needed, automate repetitive tasks, enhance workflows, and improve overall productivity. Efficiency improvements can result in cost savings, time optimization, and better resource allocation among small and large firms.

Achieve Optimal Performance and Alignment with Your Business Goals!

In today’s ever-changing, competitive landscape, auditing your technology stack should provide the necessary functionality and flexibility to support your long-term vision.

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Cameo Roberson manages Atlas Park Consulting, helping firms execute their growth strategy, improve business processes, streamline operations, and systematize the day-to-day without feeling overwhelmed so you can be prepared for next-level growth. Reach her at cameo.roberson@atlasparkco.com.

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