How to harness tech to better serve the growing high-net-worth demographic

March 09, 2018 by John Heinen

Advicent product director Ken Lotocki

About the author

John Heinen

Chief technology officer

As chief technology officer, John provides strategic, operational, and programmatic support of our products to the greater Advicent organization, our partners, and the industry. He leverages his decades of software development and product management experience to define business and product strategies, work directly with clients in providing technology solutions, and build product and service delivery organizations that deliver results while meeting regulatory requirements.

I recently discussed how financial advisors can increase their high-net-worth (HNW) and ultra-high-net-worth (UHNW) client base in FA Magazine.

Reaching and retaining HNW and UHNW clients is an industry-wide struggle, especially given increased competition and regulation. Here is how sophisticated financial technology can empower advisors to achieve this goal.

How to harness tech to better serve growing HNW demographic

The world’s rich are getting even richer.

According to a recent report from the Federal Reserve, the top 1 percent of earners in the United States now possess 38.6 percent of the country’s total wealth, up significantly from 36.3 percent in 2013.


Converting these high-net-worth and ultra-high-net-worth individuals into clients is a financial advisor’s dream come true considering the boost they can add to any advisory practice’s bottom line. With more assets, however, comes more responsibility; advisors must implement the right financial technology offering to serve this demographic effectively and holistically.There is a common misconception that high-net-worth individuals are technology averse, at least compared to their younger, less wealthy counterparts that have warmed up quickly to low-cost robo-advice offerings. There is plenty of room, however, for technology to play a massive role in the management of high-net-worth client assets, and these individuals are much more open to using online tools than you might think. Advisors just need to know which tools to implement and how to properly utilize them. 

Here are a few areas where financial technology can add value to any financial advisor’s relationship with a high-net-worth client:

Organizing A More Complex Financial Situation

High-net-worth investors come with more qualified accounts than your typical client with a 401(k) or IRA. These individuals also usually have stock options, various sources of income to monitor, and more sophisticated cash flow planning needs. Altogether, this information can be difficult to consolidate and maintain without the right financial planning technology. This comes in conjunction with the need to build financial models and make adjustments to the client’s complex plan, which can take large amounts of time out of an advisor’s day. On the other hand, a financial planning algorithm can take care of this process in minutes.

Improve efficiency by reducing the amount of lost data and static spreadsheets that require hours of diligent maintenance. Robust financial planning software can alleviate these headaches and empower advisors with the time they need to focus on building the best financial plan possible.

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