AssetMark | Blog

Financial Advisor Workflows: Best Practices for Optimal Efficiency

Written by AssetMark | Jul 21, 2023 10:06:54 PM

Being busy doesn’t always equate to productivity. Run as hard as you want, and if you are on a hamster wheel, you are going nowhere fast.

As a financial advisor, you have a lot on your plate every day. Rather than mindlessly putting your nose to the grindstone, it’s important to regularly analyze your processes and optimize your workflows.

Are inefficiencies slowing you down? 

Even minor lag times and wasted steps add up over time. For most advisors, smarter workflows can mean the freedom to accomplish more for their clients, the structure to provide peace of mind, and the flexibility to focus on the things that matter most to them. 

Whether you want to spend more time putting on the golf course, enjoying your family, or building stronger client relationships, establishing strategic workflows is a key part of a thriving career and lasting legacy. Not only do efficient processes help you save time, but they also make it easier to delegate tasks, keep your team on the same page, provide consistent quality, and prepare for future transitions.

What is a Financial Advisor Workflow?

A financial advisor workflow refers to the series of steps in a given process that financial advisors follow to manage their clients and deliver their services. Undefined and unoptimized processes are still workflows—even if they desperately need improvement. Ideally, workflows are as streamlined and as purpose-driven as possible. Defining a workflow makes it easier to analyze and standardize for your business.

Financial advisor workflows encompass activities like client onboarding, goal setting, financial planning, investment management, regular client communications, and compliance procedures. The general workflow for a financial advisor typically involves smaller processes for gathering client information, assessing their financial situation, creating a customized plan, implementing the plan, monitoring progress, and making adjustments as needed. A well-defined and efficient workflow helps advisors provide reliable, consistent, high-quality services that meet the unique needs and goals of their clients.

What Type of Workflows Exist in an Advisory Practice? 

Workflows serve as frameworks so advisors can streamline their processes, ensure consistency in service delivery, and enhance client satisfaction. They help advisors stay organized, manage their time effectively, and provide comprehensive financial guidance to their clients.

You can create workflows that apply to a major part of your practice, or you can dial into the details and establish a workflow to streamline a specific task.

Overarching Workflows for Advisors

From start to finish, how do you manage the daily demands of your business? Here are three examples of workflows that cover a broad range of tasks for your firm.

  • Back Office Workflow
    The back office workflow focuses on the administrative and operational tasks necessary to support the advisory practice. It includes activities such as client documentation management, account opening and maintenance, processing client requests, handling compliance requirements, managing technology systems, and coordinating with custodians or clearing firms. This workflow ensures efficient and accurate back-end operations, allowing the advisor to focus on client-facing activities.
  • Middle Office Workflow
    The middle office workflow bridges the gap between the back office and front office functions. It encompasses tasks related to investment research and analysis, portfolio construction, performance reporting, risk management, and compliance monitoring. This workflow ensures that the investment strategies align with client objectives, maintains accurate records, and supports informed decision-making by the advisor.
  • Front Office Workflow
    The front office workflow centers around client-facing activities and relationship management. It includes tasks such as prospecting and lead generation, initial client meetings, prospect follow-up communications, new client onboarding, account analysis, presenting recommendations, and ongoing client communication. This workflow is designed to cultivate and deepen client relationships, provide personalized service, and drive business growth.

Granular Workflows for Advisors

When it comes to the smaller experiences, your process can help you stay focused—or it can cause you to get caught up in the weeds. Here are four examples of workflows for specific tasks that advisors regularly oversee.

  • Client Onboarding Workflow
    This workflow focuses on the initial stages of bringing a new client on board. It includes tasks such as collecting client information, conducting a comprehensive financial assessment, setting goals, and establishing a solid foundation for the client-advisor relationship.
  • Financial Planning Workflow
    This workflow involves the process of creating a customized financial plan for clients based on their goals, risk tolerance, and financial circumstances. It includes tasks such as data gathering, financial analysis, goal setting, plan development, and strategy presentation.
  • Investment Management Workflow
    This workflow revolves around managing clients' investment portfolios. It includes tasks such as asset allocation, investment selection, trade execution, performance monitoring, and rebalancing. The workflow ensures that the investment strategy aligns with the client's risk profile and objectives.
  • Ongoing Client Relationship Workflow
    This workflow focuses on maintaining regular communication and providing ongoing support to clients. It includes tasks such as scheduling regular meetings, conducting portfolio reviews, addressing client concerns, providing financial education, and staying updated on any changes in the client's life or financial situation.

5 Best Practices for Optimizing Workflows and Processes

Are you ready to identify your tendencies and optimize your practice with quality workflows? The solutions might surprise you. Earn back hours in your work week by following these five best practices.

1. Define Clear Workflow Steps

Clearly define and document the step-by-step processes for various tasks and activities in your advisory practice. A documented workflow is easier to pass on to new hires or outsourced solution providers. Plus, defining your process may help shed light on bottlenecks or loopholes in your workflow. 

Outlining the steps of your workflow helps ensure consistency, reduces errors, and improves efficiency. While it might seem tedious, you shouldn’t skip this crucial first step.

2. Leverage a Technology Solution

Modern tools are necessary for improving your practice capabilities and establishing efficient workflows. However, there are many different solutions out there: choosing the right ones can be a daunting task and a full-time job.

The right fintech tools and software will automate routine tasks, streamline processes, and enhance productivity so you can do more for your clients. Technology should also help you build stronger client relationships with management (CRM) systems, portfolio management tools, document management systems, and communication platforms.

Since there is no one-size-fits-all tech stack, it’s important to work with an professional who understands the available tools and can help you set up optimized workflows that fit your firm’s needs and goals.

Choose a solution provider who can help you identify the some of the best software, platforms, and services to support your practice. Your solution provider should help you stay on top of new technologies and streamline your workflows wherever possible.

3. Delegate and Outsource

Many advisors (especially those who own their own practice) try to wear too many hats. You can’t do it all alone—and you really don’t have to!

Identify tasks that can be delegated or outsourced to free up your time for more valuable activities. Consider outsourcing functions such as compliance, back-office operations, or investment research to specialized service providers or hiring support staff to handle administrative tasks.

The tasks you choose to delegate could be things you aren’t as knowledgeable about, don’t enjoy, or need to get done but don’t have time to prioritize. Outsourcing simply makes it possible for you to focus on tasks that are most meaningful to you, your clients, and your business. You can establish workflows and use templates to help keep services consistent—even when you aren’t the one responsible for completing a task.

4. Implement Regular Review and Feedback

This isn’t a set-it-and-forget-it process; improving your business is an ongoing investment. Set realistic expectations with a plan to revisit your workflows regularly.

Continuously review and evaluate your business processes to identify areas for improvement. Don’t wait for people to complain before you consider positive changes; seek feedback from your team members and clients to gain insights on how to streamline operations and enhance client service

5. Embrace Continuous Learning

Stay updated with industry trends, regulatory changes, and new technologies so you know your options. Invest in professional development, attend conferences, and engage in peer networks to learn from other advisors and industry experts.

AssetMark helps advisors pursue continuous learning by offering educational resources, such as webinars, whitepapers, and industry insights, to keep them informed about market trends, investment strategies, and best practices. Additionally, AssetMark provides access to professional development programs, conferences, and networking events that empower advisors to stay updated, expand their knowledge, and enhance their skills in serving clients effectively.

How Can Outsourcing with a TAMP Improve Workflows?

A turnkey asset management platform (TAMP) offers end-to-end support for your business. Here are five ways outsourcing improves your workflows.

Reduces Administrative Time

By outsourcing tasks such as account setup, trading, rebalancing, and reporting to the TAMP, advisory businesses can free up valuable time that would have been spent on manual and repetitive administrative work. This allows advisors to focus on more strategic activities that support profitability, such as financial planning, client communication, and business development.

Enhances Client Focus

With the burden of time-consuming operational tasks lifted, advisors can allocate more energy and attention to building and nurturing client relationships. You can dedicate quality time to understanding your clients' needs, goals, and preferences, which allows you to provide personalized financial advice and guidance. This increased focus on relationships can lead to improved client satisfaction and loyalty.

Boosts Scalability and Efficiency

Outsourcing through a TAMP provides advisors with the ability to scale their business effectively. The TAMP's infrastructure, technology, and expertise enable advisors to efficiently manage a larger client base without sacrificing service quality. As your business grows, advisors can rely on the TAMP's resources and systems to streamline operations, ensuring consistent and reliable service delivery.

Provides Access to Advanced Tools

As a business owner, you don’t have time to stay on top of every new automation solution or wealth management tool. TAMPs often provide advisory firms with access to robust technology platforms and tools that can enhance their workflows. This may include portfolio management systems, client portals, performance reporting tools, and risk assessment software. These technological resources help streamline processes, automate tasks, and provide valuable insights for more informed decision-making.

Supports Compliance and Risk Management

TAMPs can assist advisors with compliance obligations by providing compliance support, monitoring regulatory changes, and implementing necessary controls. This ensures that advisors can adhere to industry regulations and standards while focusing on their core advisory responsibilities. The TAMP's expertise in risk management can also help mitigate potential risks and ensure adherence to best practices.

Why Outsource with AssetMark?

You need a solution provider that has your best interest in mind and understands the financial services industry. AssetMark helps advisors like you achieve optimal efficiency and streamline workflows. With our comprehensive suite of solutions and advanced technology, we make it easy to outsource time-consuming tasks, reduce administrative burdens, and focus on what matters most—building strong client relationships and growing your business. 

Our scalable platform, robust tools, and dedicated support enable you to navigate complex workflows with ease while access to compliance and risk management resources can help you manage regulatory standards. Take the next step towards maximizing your productivity and enhancing client experiences by working with AssetMark today. Schedule your complimentary consultation, and learn more about what AssetMark can do for you!