Our tips for finding the right partner for your RIA firm
A Turnkey Asset Management Platform – TAMP for short – can create opportunities for financial professionals to spend more time engaging clients.
But you may be asking yourself: What is a TAMP? Why should I use a TAMP? What benefits can a TAMP offer to an RIA? What does a TAMP cost?
Not all TAMPs are equal, and advisors would be wise to consider 7 key points when searching for the right platform.
1: Technology
It is not uncommon for a platform to focus on one discipline at the expense of another. For example, a TAMP may excel at technical and software execution but does not offer the most robust asset management options.
A comprehensive, full-service TAMP may lean on teams of both internal and external investment managers while in-house technical and technology experts manage a nimble, efficient platform. These distinct, homegrown capabilities allow for top-to-bottom support as advisors’ needs change, markets evolve, trends shift, and technology moves ever-forward.
2: Cost
If a TAMP outsources some services or licenses some underlying technologies, advisors are paying for two (or more) providers, not one. A TAMP that builds its own technology and works with its own asset management team not only provides a smooth, reactive experience, but saves on costs as well – costs that would otherwise be handed down to the advisor, or the client.
When it’s working best, a TAMP is an intentionally cost-efficient tool with investor interests at its core.
3: Flexibility
Advisors who have chosen to work with one of the larger TAMPs may find themselves and their practices constrained by the provider’s aging infrastructure. Many of these advisors who thought it would be too difficult to breakaway from a larger firm and work with a more service-oriented TAMP have discovered the transition to be quite easy.
A flexible TAMP can make it easier to move on from a platform that’s no longer a good fit by offering dedicated relationship managers who help facilitate the transition process and tailor systems that work for the advisor and the needs of their clients.
4: Scalability
As an advisor’s practice grows, their TAMP should grow right along with it. That means platform services and pricing that can respond accordingly.
A TAMP that embraces scalability – and declares that up front – helps provide advisors with features such as flexible, tiered pricing, and services that can reduce the need for additional in-house, back office personnel.
A TAMP that is committed to an efficient, personal relationship frees up resources and time to not only deepen relationships with existing clients, but also to identify and invite new clients into your practice.
5: Integration
With independent elements constructed of the same DNA, from pre-trade to post-trade, a service-integrated TAMP delivers clean, consistent data and reporting. This informs and empowers advisors to deliver exceptional client experiences while also sharing those metrics with clients in a concise, elegant manner.
With a TAMP built from the ground up, advisors are able run their entire practices through a single portal, from portfolio construction and analytics to billing.
6: Longevity
An effective TAMP is always looking for ways to improve. That happens best when team members from Platform (software developers) and Advisor Services (trading team as well as operations staff handling back and middle office functions) work closely together and communicate clearly to develop new capabilities in response to the insights and suggestions advisors provide. A static TAMP – one unwilling, or unable to adapt - will find itself left behind.
7: Client Experience
A platform that has grown so large but cannot provide the level of personal service advisors need is no bargain. Financial professionals should look for a TAMP that fits their business and is committed to helping them grow after the agreement is signed.
A service-oriented TAMP will provide a dedicated relationship manager: Advisors’ direct connection to the organization, someone they can always reach and someone who will listen.
Want to learn more about the 7 keys to partnering with the right TAMP? Click below to download the full eBook supporting your TAMP due diligence?
