FINTECH VIEWS: How Tech Stacks Can Encourage Bank-Based Advisors to Go Independent

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Across major cities from coast to coast, there’s a rising wave of bank-based financial advisors exploring independence. With decades of experience under their belt, these advisors increasingly understand the role technology can play in providing them with a leading edge as independents. It may even be a key decision factor. While financial services have been highly focused on technology that improves the client experience, more advisors may be seeking platforms that enhance advisor autonomy and practice scalability.

Genesis Wealth, a wealth management firm in the Chicagoland area operating through LPL Financial as its broker-dealer and RIA, is leveraging tech stacks to remove legacy limitations. According to Kosta Tanglis, Founder and Managing Partner at Genesis Wealth, technology stacks are less back-end support and more catalysts for independence. The tech capabilities on offer in the independent space are what advisors crave most when deciding to go independent. They offer a welcome change from banks’ legacy systems and slow innovation cycles that create frustration for ambitious advisors.

In the following Q&A with Tanglis, we explore why independent advisors can expect a modern and flexible technology ecosystem, where banks fall short and how the right tools unleash advisor potential.

1. What types of digital solutions and technologies do seasoned and successful bank-based advisors crave, and would be in their “pro’s” column when deciding to go independent at a firm like Genesis Wealth?

Without question, financial planning software that comes without limitations. A close second would be software that supplements the financial planning process. Think estate planning and tax planning.

2. When it comes to technology and digital solutions, where do you feel banks fall short?

They fall short in two places.  Advisors in banks are severely limited in the technology and digital solutions available to them.  Secondly, banks are slow to improve the quality of their technology, which makes sense given the competing priorities within a bank and how to allocate capital and resources.   This is a significant advantage that LPL has with advisors, as LPL’s only business is to be a platform for advisors and is constantly improving and enhancing the quality of the technology and the suite of products and services available to its advisors.

3. In your view and based on what you’ve heard from people leaving the banks to go independent, why do you feel you’ve been so successful in recruiting bank-based advisors to your platform? Specifically, what do you say about your tech stack in those recruiting meetings?

We unlock the potential of these incredibly talented advisors who have thus far succeeded despite the restrictions and limitations they have faced at the bank.  Not only do those restrictions and limitations get removed, but advisors are now given enhanced offerings and can supplement what we provide with specialized tech solutions specific to the way they run their practice.

Imagine being a world-class race car driver and being stuck driving a Ford Pinto your whole life. We offer the chance to drive a Formula 1 car and unlock your true potential as a financial advisor.