Fortunately, outsourcing critical functions to a trusted third-party provider has become an effective strategy for firms looking to stay competitive, expand their reach, and deliver an exceptional client experience. This trend has fueled the rise of the wealthtech market, which is projected to grow to over $2 trillion by 2027.¹

The numbers tell the story:

• Wealth management firms spend an average of 5.7% of revenue² on tech operating expenses, an increasing challenge in the era of fee compression.
• The top three challenges² cited by wealth managers in their operating models are: capital and time required to modernize capabilities (73%), poor integration of technology (58%), and legacy systems (46%).
• 71% of wealth managers cite the ability to focus on core business functions as their primary reason for outsourcing.

The benefits of outsourcing

Time and trust are among the most valuable assets for financial professionals. Maximizing both—without compromising quality—is the key to growth. Outsourcing allows firms to elevate their service offerings, streamline operations, and free up time to focus on what truly matters: deepening client relationships and scaling their business.

Why outsourcing makes sense:

• Save time – Leverage specialized experts to handle operational and regulatory tasks so you can focus on clients.
• Reduce costs – Instead of hiring full-time staff or managing costly tech investments, pay one provider to address multiple needs efficiently.
• Increase scalability – Use integrated platforms to personalize client interactions, enhance service offerings, and support firm-wide growth.
• Access broader investment solutions – A trusted provider gives you access to a range of investment strategies, model portfolios, and curated asset managers—all in one place. Simplify your analysis and execution with real-time resources, research, and state-of-the-art trading capabilities. This level of integration enables firms to make investment decisions faster and more efficiently.
• Streamline operations – Reduce inefficiencies with automated workflows, real-time data validation, and lower error rates (such as NIGOs).
• Simplify vendor management – Instead of dealing with multiple vendors, a single outsourced provider serves as your go-to resource, eliminating the frustration of coordinating across multiple platforms.
• Eliminate tech headaches – No more struggling with fragmented legacy systems — outsourcing ensures seamless integration and ongoing updates without IT disruptions.
• Refocus on growth – Free up your time by delegating non-client-facing tasks so you can concentrate on business development, prospecting, and strategic planning.

The right outsourcing partner isn’t just a vendor—it’s an extension of your team, bringing deep industry expertise and a shared commitment to your firm’s success.

What to look for in a third-party solutions provider

Choosing the right outsourcing partner is critical. A provider should not only align with your firm’s culture and values but also deliver measurable business benefits. Key considerations include:

1. 1. Industry-leading technology – Is the provider a trusted, recognized innovator with a proven track record of delivering innovative solutions?
   2. Investment capabilities – Can the platform support UMA/SMA/model portfolios and Rep-as-PM structures with flexible customization?
   3. Seamless data integration – Is data connected across all systems to eliminate redundancy and improve efficiency?
   4. Business model flexibility – Does the provider support multi-custodian relationships? For complex trading, does the provider have the experts and technology to serve these transactions? Can you customize for your specific workflows?
   5. Cost-effectiveness – Does the pricing align with your firm’s growth objectives and operational goals?

Now is the time to leverage the power of outsourcing

Independent financial advisors understand the consequences of an underperforming tech stack—regulatory risks, security vulnerabilities, inefficiencies in siloed data and hard-to-integrate legacy systems, and hidden costs that stifle growth. In today’s wealth management landscape, firms need seamless, integrated, and scalable solutions to meet evolving client expectations and regulatory requirements.

The Amplify Platform: Purpose-built for financial advisors

Amplify was designed specifically for independent financial advisors and RIAs. Our platform seamlessly integrates billing, trading, reporting, risk management, and compliance—so you can focus on what you do best: serving your clients and growing your business.

Learn more about how Amplify can transform your firm’s operations and elevate your client experience.

¹ https://www.morningstar.com/views/blog/data/wealth-tech-trends
² https://www.ey.com/content/dam/ey-unified-site/ey-com/en-us/insights/wealth-asset-management/documents/ey-we-are-entering-the-wealth-as-a-service-era.pdf

Amplify Technology, LLC (“Amplify”) is not an investment adviser. Its services are for informational purposes only and do not constitute investment advice or recommendation. Please consult a registered investment adviser before using Amplify and its services.