The Rise of Unified Managed Accounts: Financial Advisors Seek Single Platform Solutions
In the ever-evolving world of financial advising, technology is playing a crucial role in shaping the way advisors manage their clients’ portfolios. Just as consumers demand convenience and accessibility in their everyday lives, financial advisors are pushing for a single platform that can streamline their transactions and workflows across different accounts.
According to a report by Cerulli Associates, the shift towards unified managed accounts (UMA) is gaining momentum, with the percentage of platform sponsors moving to a single platform architecture more than doubling in the last four years. This move away from individual, product-focused platforms towards UMAs allows advisors to hold various types of securities in one account, treating it as a cohesive portfolio rather than separate buckets.
The trend towards consolidation and partnership among advisor platforms and tech providers is evident, with companies like GeoWealth and BlackRock teaming up to offer custom model portfolios on a single UMA platform. This collaboration not only simplifies the advisor’s workflow but also provides access to a wider range of investment options for their clients.
While the industry is making strides towards a more unified approach to portfolio management, there are still challenges ahead. The Cerulli report indicates that a significant portion of respondents expect at least two years to complete the platform consolidation process. This delay is partly attributed to the reluctance of some older advisors to embrace new technology, preferring to stick with their traditional operating systems.
Despite the obstacles, the ultimate goal remains clear: to provide advisors with the best tools and resources to serve their clients efficiently and effectively. As technology continues to advance, the key will be finding the right balance between innovation and adoption, ensuring that advisors can spend more time focusing on their clients and less time grappling with the complexities of technology.
In conclusion, the shift towards unified managed accounts and streamlined platforms is a positive development for the financial advising industry. By embracing new technologies and partnerships, advisors can enhance their capabilities, improve their workflows, and ultimately deliver better outcomes for their clients. The future of financial advising is bright, with technology leading the way towards a more efficient and client-focused approach.
