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Maximizing Efficiency & Client Satisfaction: The Case for Using a TAMP

Maximizing Efficiency & Client Satisfaction: The Case for Using a TAMP

November 13, 2023

In the dynamic and ever-evolving landscape of financial advising, professionals are constantly seeking ways to enhance efficiency, streamline operations, and provide superior services to their clients. One powerful solution that has gained prominence in recent years is the Turnkey Asset Management Platform (TAMP). This article explores the compelling reasons why financial advisors and Registered Investment Advisors (RIAs) should consider adopting a TAMP to elevate their practice.

Six Key Reasons Why Advisors Outsource to a TAMP:

Time Efficiency and Focus on Core Competencies

Financial advisors and RIAs wear many hats, from client acquisition and relationship management to market analysis and investment strategy. A TAMP allows these professionals to delegate investment management tasks to a specialized platform. By doing so, advisors can reclaim valuable time and redirect their efforts towards core competencies like client engagement, financial planning, and business development.

Access to Institutional-Quality Investment Strategies

TAMPs often provide access to a wide array of institutional-quality investment strategies, including model portfolios, mutual funds, and exchange-traded funds (ETFs). This enables advisors to offer their clients diversified and sophisticated investment options that may otherwise be challenging to implement independently. The access to these strategies can enhance the overall investment experience for clients, fostering trust and satisfaction.

Risk Management and Compliance

Navigating the complex landscape of compliance and risk management is a critical aspect of financial advising. TAMPs can play a pivotal role in helping advisors adhere to regulatory requirements. These platforms typically have robust compliance frameworks and reporting tools, easing the burden on advisors and reducing the risk of errors or oversights in adherence to industry regulations.

Scalability and Business Growth

As financial advisory practices expand, the need for scalable solutions becomes paramount. TAMPs offer a scalable model that can adapt to the growth of an advisor's business. Whether managing a handful of clients or a diverse portfolio, the TAMP structure ensures that advisors can efficiently scale their operations without compromising the quality of service.

Technology Integration and Automation

In the digital age, technology integration is non-negotiable for staying competitive. TAMPs often come equipped with advanced technology solutions that can seamlessly integrate with a financial advisor's existing systems. Automation of routine tasks, such as portfolio rebalancing and reporting, not only reduces the risk of human error but also allows advisors to focus on strategic, high-value activities.

Cost Efficiency and Economies of Scale

By leveraging the resources of a TAMP, advisors can benefit from economies of scale. TAMPs pool assets from multiple advisors, enabling cost-efficient access to premium investment strategies, research, and technology. This cost-effectiveness can be passed on to clients, making the advisor's services more competitive in the market.

Deciding On a TAMP That is Right For You

When evaluating a Turnkey Asset Management Platform (TAMP), financial advisors should consider several factors to ensure that the platform aligns with their business goals and client needs:

Investment Options and Strategies:

Assess the range of investment options and strategies offered by the TAMP. Ensure that they align with your clients' needs and risk profiles.

Fees and Costs:

Understand the fee structure of the TAMP. Evaluate both the explicit fees (e.g., platform fees) and any underlying investment expenses. It's crucial to ensure that the costs are reasonable and transparent.

Technology and Integration:

Evaluate the technology infrastructure of the TAMP. Look for platforms that offer user-friendly interfaces, robust reporting tools, and seamless integration with your existing systems and tools.

Scalability and Flexibility:

Consider whether the TAMP can scale with your business as it grows. Assess the platform's flexibility to accommodate changes in your business model or investment approach.

Performance Track Record:

Examine the historical performance of the TAMP's investment strategies. While past performance is not indicative of future results, it can provide insights into the platform's approach and consistency.

Support and Training:

Evaluate the level of support and training provided by the TAMP. This includes onboarding support, ongoing training, and access to a responsive customer service team.

Customization Options:

Determine the level of customization the TAMP allows. Advisors may have specific investment philosophies or client preferences that require a certain degree of customization.

Reputation and Reliability:

Research the reputation of the TAMP in the industry. Look for reviews, testimonials, and feedback from other advisors who have used the platform. Reliability and stability are critical factors.

Client Experience:

Consider how the TAMP's offerings will impact the client experience. A positive client experience is essential for client retention and referrals.

Transition Assistance:

If you are transitioning from another platform or model, assess the TAMP's support for a smooth transition. This includes data migration, client communication assistance, and other transition-related services.

In the competitive world of financial advising, the adoption of a Turnkey Asset Management Platform emerges as a strategic move to enhance efficiency, mitigate risks, and provide a higher level of service to clients. By leveraging the benefits of technology, diversification, and scale, financial advisors and RIAs can position themselves for sustained success in an ever-evolving industry.

Conclusion

In the competitive world of financial advising, the adoption of a Turnkey Asset Management Platform emerges as a strategic move to enhance efficiency, mitigate risks, and provide a higher level of service to clients. By leveraging the benefits of technology, diversification, and scale, financial advisors and RIAs can position themselves for sustained success in an ever-evolving industry.

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Matt Hamilton serves as President of TPFG and oversees sales, national accounts, strategic partnerships, private wealth, marketing, and the RiskPro software team. Before coming to TPFG, he was Vice President of Model Portfolios at Fidelity Institutional (FI), where he was instrumental in launching Fidelity’s Model Portfolios business including product, operational, and marketing support structures. Prior to that, he was Vice President, ETF Strategist-Model Portfolios at State Street Global Advisors where his role was commercializing institutional multi-asset class capabilities as ETF model portfolios.

Disclosures

The information presented is the opinion of TPFG and is believed to be accurate but has not been independently verified. TPFG makes no warranties as to the accuracy of the information or any representations made or implied. Articles cited/linked to are the express opinion of the third-party author. There are no affiliations between TPFG and any third-party links. All information may be changed without notice. The information should not be construed or interpreted as an offer or solicitation to purchase or sell a financial instrument or service and should not be relied on or deemed the provision of tax, legal, accounting or investment advice. Past performance is not a guarantee of future results. All investments contain risks to include the total loss of invested principal. Diversification does not protect against the risk of loss.