The Future is Integrated | Building Blocks of a Modern Firm

Integrations are a critical aspect of an advisor’s technology stack. Not only that, but the varied and demanding needs of different advisors and firms are pushing technological boundaries. However, with the inherent complexities involved in getting different companies to weave together products that are built to organize their data differently, integrations can present significant hurdles.

Despite the challenges, the wealth industry’s breadth and depth of integrations are significantly improving, year over year. Many early integrations were simple Single Sign On (SSO) solutions that, while convenient, added little efficiency to an advisor’s workflow. Today, many integrations in the wealth technology market have evolved to include robust data flows between systems.

In addition, many of the most popular solutions have integrated over time to provide a good base level of integration for advisors, smoothing many of the core interoperability workflows across the key components of an advisor’s tech stack. Important advisor data such as investment/account data, household information, and contacts now often flow between multiple products with ease.

Navigating Tech Stack Workflows

However, we continue to hear from advisors that they want deeper integrated workflows in their tech stack.  Advisors require workflows beyond those core interoperability and data flows to improve advisor efficiency and line up with how firms run their practice. While we think integrations will continue to improve, we see many firms trying to solve this problem now. To do this, firms generally approach it in one of three ways:

1. All-in-One solutions – Many firms work with one vendor who can provide most, if not all, of the core technology needs in one integrated platform. This one-platform approach often results in the ability to have deeper workflows between those core pillars of their technology because they are built and designed to be bundled together.  The challenge with this approach is that advisors often run their businesses in very different ways and may have differing needs for their technology. An all-in-one package can be limiting for an advisor if it doesn’t match to how they run their firm, which then sends them looking for components of their workflow from other vendors, defeating the purpose of the all-in-one solution.
2. Data Orchestration Solutions – A more recent development in the market is the rise of data orchestration or integration platforms. These solutions focus on serving as a hub that connects all the pieces of an advisor’s tech stack.
   
   These hubs build independent integrations to various technology products, allowing advisors to tie them together uniquely.  Currently, these solutions usually focus on specific pain point workflows, like account opening or client onboarding, and are meant to enhance or complement existing integrations.  These solutions can be great options for advisors as they continue to grow and add new integration partners and workflows. The downside of these tools is that they introduce another vendor cost into technology budgets. Additionally, the tools are often still limited to specific workflows and not every technology product works with a given data orchestration system, limiting their effectiveness.
3. Proprietary Solutions – The last approach we see firms take is building their proprietary centralized platform to meet their advisor’s needs or create their own integration workflows. This often involves firms building their own data warehouse to consolidate data from the solutions they use. They then use that to build custom experiences for their advisors or create custom integration workflows directly with third-party vendors. 
   
   This approach is the most customizable, allowing firms to build to their needs. However, it is also the most expensive in terms of monetary and human capital resources. As a result, it typically only works for firms large enough to invest in substantial technology teams.

The SS&C Black Diamond^® Wealth Platform invests in our capabilities to support advisors across all three approaches. Whether advisors look to take advantage of our full suite of integrated offerings, build their own proprietary solution, or leverage our API to connect to third-party tools and partners, Black Diamond is built to support advisors where they are. 

To learn how the SS&C Black Diamond Wealth Platform can support your unique advisory business, check out the various integration partners we connect with, review our API overview, or schedule a demo to learn more about our all-in-one solution.