Advice firms often use several systems to manage client relationships, planning, workflows and business operations. This can make it difficult to understand whether a CRM is enough, or whether the business needs a broader financial adviser software platform.
The answer depends on the firm’s requirements, existing technology and future plans. A CRM may be an important part of the solution, but it may not support every stage of the advice journey on its own.
This article explains the difference between financial adviser software and CRM systems, the capabilities that may overlap and the questions to ask when comparing options. It forms part of our complete guide to financial adviser software.
Financial adviser software vs CRM: what’s the difference?
Financial adviser software and CRM systems can overlap, but they are not always the same thing. A CRM generally focuses on managing relationships, records, activities and communications. Financial adviser software may include CRM functionality alongside financial planning, advice workflows, documentation, portfolio information, reporting and business operations.
Understanding the difference can help firms define what they actually need before comparing platforms.
What is a CRM?
Customer relationship management software helps businesses organise information about customers and manage interactions with them. For an advice firm, this may include client records, contact details, meetings, tasks, notes, communications and follow-up activity.
What does a financial adviser CRM manage?
A financial adviser CRM may help teams manage:
- Client records and household information.
- Adviser and support-team tasks.
- Meetings and communications.
- Lead and opportunity activity.
- Documents and notes.
- Review dates and follow-up actions.
- Workflow stages and case status.
These capabilities can be valuable, but they may not cover the wider planning and advice requirements of a regulated advice business.
What does financial adviser software add beyond CRM?
Depending on the platform, financial adviser software may also support:
- Fact-finding and client discovery.
- Financial planning and modelling.
- Advice documentation and recommendations.
- Implementation workflows.
- Ongoing review processes.
- Portfolio and investment information.
- Client portals.
- Compliance and reporting.
- Revenue and remuneration management.
- Integrations and datafeeds.
Xplan combines financial planning tools with CRM and back-office functionality for advice firms.
When might a standalone CRM be sufficient?
A standalone CRM may be suitable when a firm primarily needs to manage relationships, activities and communications, and already has effective tools for planning, advice documentation, portfolio management and compliance processes.
When might an integrated advice platform be more suitable?
An integrated platform may be more appropriate when a firm wants to connect client management with financial planning, advice workflows, documentation, reviews and business reporting. The benefit is not simply having more features; it is reducing fragmentation between the activities that make up the advice process.
How do CRM, planning, workflows and compliance connect?
Client information often sits at the centre of the advice journey. When systems are connected, data may be reused across fact-finding, planning, recommendations, workflows and reviews. This can reduce rekeying and improve visibility, provided the data is accurate and the processes are well managed.
Xplan Integrations provides more information about connecting adviser technology.
What about client communication?
A client portal can extend the relationship beyond the adviser’s internal CRM. It may support secure communication, document sharing and information exchange. Client Portal is designed to help advisers and wealth managers communicate securely with clients online.
Questions to ask when comparing platforms
- Do we need CRM only, or wider advice functionality?
- Can client data flow between planning and workflow tools?
- How are documents, recommendations and reviews managed?
- What reporting and compliance support is available?
- Can the platform connect with our existing systems?
- How will the solution support future growth?
Summary
CRM is an important part of financial adviser software, but it is not always the whole solution. Firms should compare platforms based on their complete advice journey, operational requirements and future plans.
Next step
Find out how Iress combines financial planning, CRM and back-office functionality or request a demonstration.
