Backoffice Outsourcing Can Streamline Financial Advisor Operations


Have you or your staff ever wished you had more time in the day to focus on client building and engagement tasks? Ever feel like you're always working on activities that are not directly related to growing your AUM? If so, business process outsourcing (BPO) may be the solution for you. BPO is the practice of contracting out non-core business processes to a third-party provider, such as AllBackoffice Consulting. This can include anything from data conversions, implementing new software, daily work in portfolio management software such as PortfolioCenter®, marketing tasks, billing, and more. By outsourcing these processes, financial advisors and their staff can free up time and resources to focus on their core competencies. Wondering if BPO is right for your business? Keep reading to learn more.


As much as an advisor and their staff try, most firms just are not experts at everything. And with the ever-growing ecosystem of software and service providers, combined with the (for)ever-increasing fee compression, it invariably becomes difficult for a financial advisory firm to operate optimally. There comes a point where a backoffice provider is an essential extension of a financial advisory firm because they take on those tasks that are not directly tied down by revenue generation. With the right outsourcing partner, advisors have access to some of the best operations, admin, support, and business development people in the financial services industry.


Systems and Automation


Advisors understand the need to use software and systems to operate most effectively. However, how many financial advisors use those systems optimally? And with so much choice in the marketplace today, it can be difficult for a financial advisor and their staff to determine the best system for their tech stack.


Over the past 5 years the number of software and service providers in wealth management has grown substantially. One look at the Kitces Fintech Map from 2022 visualizes the explosion of resources available to financial advisors. And with so much choice, advisors may not know the systems with the best integration options or be aware of the all the features their systems offer.

A backoffice outsourcing partner that is well-versed in all the tools available can sit with an advisor and their team and take the time to understand what the firm is trying to accomplish and what the best outcome can look like. Implementing the correct systems and automation is important to moving towards operational efficiency, but unless the systems deployed match the advisory firm’s unique way of doing business, inefficiencies can and will arise from that very automation that is intended to make operations smooth.


What to Outsource?


Financial advisors can outsource a myriad of tasks, as well as entire departments. Need help with benefits or compliance? There are backoffice outsourcing providers, such as AllBackoffice, that can handle all the HR and compliance needs. Or maybe you just need to free up the time spent reconciling, posting, and billing in portfolio management software. In the latter example, it is often the best decision to outsource the portfolio management work as the backoffice team can handle those mundane tasks faster and cheaper than in-house staff.


To stay competitive in today's market, it is important for advisors to find ways to operate efficiently, cut costs, improve performance, and find more time to work with clients. Working with a backoffice outsource provider can help you do just that by allowing your company greater flexibility while also boosting innovation - all without sacrificing coverage should you lose a key employee.


Give us a call to learn how we work with financial advisors, and to see if we may be a good fit to work with you.