Tips for brokers when hiring a new CTO

As an established broker, you need to stay on top of technological developments. Your clients (and advisors interested in joining your team) expect you to frequently update your service offering with new and exciting features.

We have identified a consistent problem that all brokers have:

Brokers are currently experiencing high competition in the market. They are constantly approaching each other’s clients to convince them to move over to their books. For brokers to be competitive and retain their clients, they need skilled advisors that are the best of the best.

The best advisors are focused and dedicated; they want to work in a place that supports their strengths and empowers them to offer excellent service. They don’t want to work somewhere that drowns them in admin. Top-tier advisors are also skilled at using technology to serve their clients, and they expect the same from the brokerage they work for.

How can this get any worse?

As technology gets more and more advanced, innovation is accelerating. Keeping up to date with the latest developments can be challenging for brokers, and quite a big challenge at that. The need for data protection services is increasing with the introduction of POPIA. Since data breaches can be devastating for clients and their brand image, clients are demanding more advanced security measures from their advisors and brokers. If brokers do not take sufficient action to ensure data security, their advisors may simply leave and take their client portfolio with them.

What is the solution to this problem?

Start with a definition of your unique proposition. Create a material view of the future in a way that you can share with brokers and clients. Why do you think your brokers can collectively offer a better level of service than your competitors?

A lot of advisors think that the "person" makes the difference. This view may be true but it doesn’t scale very well. Brokerages need to leverage IT products and solutions to deliver high-quality services at scale. These products and services are the result of an IT strategy formed with the help of your CTO.

Understand your strengths and weaknesses, and consider how they align with your vision. You need to understand what you need, what you don't need, and what the industry doesn't need. Develop a realistic idea of what it might cost to implement technological developments to improve on pain points.

Armed with this knowledge, brokers can start looking for people with the skills they need to deliver that vision. This is where Seed Analytics comes in.

Seed Analytics was founded over 9 years ago and offers data consolidation, statement generation and analytics to our extensive list of clients. We report on a number of AUM and have experience with building and launching systems that scale. Advisors use our systems to distribute consolidated statements to their clients at a click of a button.

Winning brokerages have realistic IT strategies

Advisors are attracted to high-quality brokers. Brokers who are on top of the market and the latest technological developments will attract and retain the best advisors. When you are the best broker and have a team of brilliant advisors, your clients will never receive anything less than the best possible service.

The best brokers are thought leaders who can monitor business developments and introduce cutting-edge strategies as needed by the clientele.

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Taking Over an Advisors Book: 101

As a financial advisor, your clients are your main priority. Your clients require your undivided attention. To give them what they need, you need to ensure that you have your systems and processes in place.

When taking over another advisor’s investor book, you need to be able to consolidate large amounts of data quickly and effectively. Specifically total asset amounts in each account that give you an indication of the total fees you can earn as well as any upselling opportunities. We recommend that you invest in high-quality software that can help you make data-driven decisions.

1. Research, research, and more research

Buying an investor's book is a process that needs to be respected. The seller is probably retiring from the industry and their clients have been with them for years or decades. As the buyer, you have the responsibility to research the portfolio to determine that the purchase is worth the investment. We have designed software to help buyers identify potential investors' books that may be viable options for them to purchase.

2. Use technology to your advantage

When taking over another advisor’s investors book, you need to be able to consolidate large amounts of data quickly and effectively. Specifically total asset amounts in each account that give in you an indication of the total fees you can earn as well as any upselling opportunities. We recommend that you invest in high-quality software that can help you make data-driven decisions.

3. Keep it personal

Consider that there is a risk of all these acquired investors leaving within the first two years of being onboarded. Your new clients have not yet built rapport with you and are looking for professionalism and individual attention. Make sure you use all the tools at your disposal to optimise your service offering and link it to your brand. A human connection is great but when it comes time to hand over the book you'll want your clients connected to a brand rather than the advisor themselves.

Contact us for a demo of our software and discover how Seed Analytics can reduce the complexity of buying investors' books and managing your new clients.

Seed Analytics awards full bursaries to Tuks students

We believe that the future of business is data driven. That’s why Seed Analytics is investing in South Africa’s future by supporting exceptional students to become game changers and decision makers in data science and analytics.

We have awarded full annual tuition bursaries to two female students in the University of Pretoria’s Faculty of Engineering, Built Environment and Information Technology. These students demonstrate a remarkable commitment to developing South Africa’s tech space, and they are passionate about encouraging others to follow suit.

Ms Thandeka Biyela, a student in the Department of Electrical, Electronic and Computer Engineering, is overjoyed to be a step closer to achieving her dream of becoming an electronic engineer. “This bursary gives me the unique opportunity to meet people in the industry and be inspired by their success stories. It is a deeply encouraging experience,” says Thandeka.

Ms Keitumetse Molefe, a student in the Department of Computer Science, voiced her gratitude for receiving a bursary that will place her at the forefront of change. “This bursary is close to my heart and hits home because it is important to me to contribute to innovative solutions. As the world embraces the digital age, technology is becoming essential in many, if not all industries.”

We take pride in supporting these students as they work towards achieving their professional and personal goals. In a country where there are long-standing racial disparities in access to higher education, we hope that investing in black South African students will help pave the way to a more equitable future.

Prof Sunil Maharaj, former Dean of the Faculty and currently Acting Vice-Principal: Research, Innovation and Postgraduate Education, commented on the value of industry investment in universities. “It is through partnerships like these that we are able to reinvent and reposition ourselves to be globally competitive through smart strategies,” says Maharaj.

The Seed Analytics Bursary Fund was identified to assist capable, committed students in Science, Technology, Engineering and Mathematics (STEM) fields who are struggling to fund their studies. Our ideal candidates are open to pursuing careers in data analytics, data science and fintech. This programme should also offer Seed Analytics a much-needed talent pipeline, as we hope to stimulate our students’ interest in our company through vacation work at Seed Analytics.

Alongside these annual tuition bursaries, our students receive a wealth of learning experiences to jumpstart their careers. Through vac work at Seed Analytics, students will gain practical exposure to data science and analytical tools. They will learn procedures for extracting client insights and using them for client wealth creation and preservation. Our students will have access to training and mentorship from actuaries, investment specialists, system architects, database analysts and Java developers.

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