The Importance of Reporting Provider Technology for RIAs

The number one question we receive from advisors looking to establish an RIA is, “How do I recreate the products and services I’ve always offered to my clients here at the wirehouse or independent broker-dealer where I have spent my entire career?” To answer that question, we refer to the following chart, which shows the systems that typically make up an RIA’s infrastructure, and the flow of data throughout the back-office ecosystem.

As you can see, the Performance Reporting software acts as the “hub” for all data as it flows through the rest of the RIA’s back office systems. Client positions and transaction history flow from the custodian(s) into the performance reporting software, and from there, it is pushed to all other components of the RIA’s infrastructure. With its aggregation tools, the performance reporting technology allows RIAs to report on a client’s total financial picture, pulling asset values from 401k plans, liabilities, outside investments (including alternative investments held outside the main custodian), loans, collectibles, investment property, etc.

The Importance of Reporting Provider Technology for RIAs