What advisors want (and need) from technology providers

Much has been written about what advisors need and want from practice enhancement technology. Most of it has focused on specific applications. At this point, I think it's easy to make a few assumptions: Most, if not all, advisors need staples such as contact management and CRM capabilities, financial planning tools, content, research, market data, the ability to trade, etc. But there are a few requirements that are a little more basic that you should require from technology providers that often are overlooked.

The good news is that most advisors view technology as critical to delivering the best to their customers and making them more productive. With that said, technology isn't something all advisors are comfortable with. For it to be effective, technology needs to deliver solutions to business problems advisors have. The coolness factor of technology doesn't necessarily count for much. The following topics focus on what advisors should be thinking of when they assess and select technology applications.

Integration -- Without question this is the most important aspect of technology that advisors want. There are two points worth discussing. The first is the ability to provide a one-stop shop for advisors. They only need to log on to an application once in order to access everything they need. The second point involves data integration. Advisors don't like having to re-key data into multiple applications. With recent advances in technology, the ability to integrate data held at custodians and partner firms can be populated into specific applications. It's important for advisors to understand such capabilities are available.

Ease of use -- There's a reason consumers keep coming back to sites like Yahoo, eBay and Google. They're simple, easy to understand and can be used with little or no direction. Advisors should request the same from their technology applications. Technology providers conduct extensive usability tests before releasing new versions of their software. Inquire about the results.

Customization -- Not all advisors conduct business or use technology in the manner it is intended. The ability to customize an application is important. When we discuss customization, there are different levels that can be provided. The target market for the product should dictate the level of customization the product undergoes. The experience of most technology providers concerning customization is that it is not extensively used. However, people who do maximize its use tend to be the more loyal to the product.

Training and best practices overviews -- It's amazing to me when technology providers invest significant amounts of money into the products themselves but very little in education tools to ensure their proper use. The advisory business is complicated, and while providers need to strive for greater ease of use through usability testing, certain products should also include training modules. Once you know the design features of a technology product, maximizing its use will pay dividends.

Client data and privacy -- The trust that clients place in you can only be ensured if their data are handled professionally. The last thing anyone wants is to see the name of his technology provider in the news for breaching privacy laws or exposing client data. Technology providers should obtain third-party security assessments on their systems and then share the results with their advisor clients.

There's no real mystery to why some technology products do better than others. Too often they're presented as generic technology tools, rather than as a way to solve an advisor's business needs. Technology that has the right combination of the ability to solve business needs, and the topics mentioned above makes for a win-win solution for all involved.