In today’s fast-moving wealth management world, having the right technology isn’t just an advantage—it’s essential. For RIAs, the question isn’t whether to invest in tech, but how.
Do you build a custom stack using best-of-breed tools that specialize in specific functions? Or do you opt for the simplicity of an all-in-one platform that covers everything from CRM to rebalancing in one solution? Some firms are even blending both.
Here’s a closer look at the pros, cons, and strategic implications of each approach—and how RIAs can future-proof their tech stack for long-term growth.
The case for best-of-breed: specialized tools, superior features
Best-of-breed solutions are the specialists of the WealthTech world. Whether it’s portfolio rebalancing, compliance, or CRM, these tools focus on doing one thing—and doing it really well.
Why RIAs love them:
- Top-tier functionality: Get advanced features tailored to your most critical workflows.
- Faster innovation: Vendors focused on one niche often lead the way in product development.
- Custom-fit ecosystems: Choose only what you need and build around it.
- Cost efficiency: Pay for functionality you’ll actually use—no bloated feature sets.
What to watch out for:
- Integration challenges: Connecting systems takes time and IT resources. 57% of advisors cite integration issues as their biggest tech challenge.1
- More vendor relationships: Managing multiple contracts and support channels can be a drain.
- Training & complexity: A fragmented stack can make workflows harder for teams to master.
The case for all-in-one: simplicity and streamlined workflows
All-in-one platforms offer everything in a single package. From client onboarding to trading, you get a seamless user experience, often with pre-integrated workflows that reduce complexity.
Why RIAs choose all-in-one:
- Fewer headaches: One platform, one vendor, fewer systems to maintain.
- Faster onboarding: New team members can ramp up quickly on a unified system.
- Lower upfront effort: Prebuilt integrations and workflows mean less configuration time.
Limitations to consider:
- Less depth: All-in-one tools often don’t match the capabilities of niche solutions.
- Customization gaps: You may have to adapt your workflows to the software—not the other way around.
- Vendor lock-in: Your firm’s flexibility may be limited by one provider’s roadmap.
The rise of hybrid approaches: best of both worlds
To meet both efficiency and customization needs, many RIAs are taking a hybrid approach—using an all-in-one platform for core operations and plugging in best-of-breed tools where it counts (like rebalancing and trading).
Why hybrid works:
- Tailored functionality where it matters most
- Scalability without overhauls
- Optimized client experiences, backed by operational simplicity
However… Hybrid systems still require careful integration and oversight to avoid fragmented workflows or data silos. For example, a growing RIA might use a best-in-class rebalancer for portfolio precision, integrated into a broader platform that handles billing and CRM.
4 quick tech strategy tips for RIAs
- Assess your firm’s needs. Define what matters most—client experience, automation, cost savings, etc.
- Think long-term. Choose platforms that can scale with your business and adapt to market evolution.
- Prioritize integration. Whether going hybrid or best-of-breed, strong APIs and data syncing are non-negotiables.
- Demand vendor support. Great tech isn’t enough—it needs to come with responsive service and ongoing improvements.
Positioning for growth
Technology is more than a tool—it’s a strategy. RIAs that align their tech stack with their growth goals, client service model, and internal workflows are better positioned to thrive.
Whether your firm leans toward a curated mix of best-of-breed tools, an all-in-one platform for simplicity, or a flexible hybrid model, the key is staying intentional. Empower your advisors with the right tools, reduce friction in your operations, and ensure your tech stack evolves with your firm.
Don’t just build for today—build for the future.
1 Cerulli/2022 InvestmentNews Advisor Survey