Clockwork Wealth Management: Synching Accounts in Salesforce

An Overview of the Flow of Financial Data

Well-ordered systems impart a special thrill. Transparent clocks are mesmerizing to watch: it’s satisfying to observe each cog moving in orderly fashion. As humans, we’re wired to favor intuitive and predictable things, like falling dominoes.

While some businesses thrive on creative chaos, one industry exists precisely to make sense of unpredictability: wealth management. The point of trusting professionals with one’s hard-earned money is that they won’t ‘play it by ear.’ In fact, exceptional wealth management firms are exceedingly precise, both in planning financial strategies and when it comes to business operations. It all unfolds with the elegance of an old-fashioned music box.

So, as a wealth management professional, transitioning to Salesforce may cause you some trepidation. If you’re not sure how this CRM will mesh with your existing custodian and portfolio management systems, you’ve come to the right place.

We’ll illustrate how the flow of financial information will be as methodical as air traffic control:

A Choreographed Dance of Data Flow

Consider Puzzlebox Wealth Management. Throughout the sales process, Salesforce records information pertaining to leads. Once a new client is won – let’s call him S. Holmes – his accounts are established in the custodian system. Next, Mr. Holmes moves his money into this host or custodian account.

The financial data from the custodian feeds into the portfolio management system. Puzzlebox Wealth can now use their knowledge of Mr. Holmes’ financial goals – helpfully recorded in Salesforce – to start investing. As a wealth management professional, you’re probably familiar with this basic sequence.

Three months later, the client’s portfolio value will have changed. Now, stocks make up 30% of Mr. Holmes’ wealth, although he specified he wanted a 20% stock maximum. The firm must rebalance, investing the extra 10% in bonds. The updated portfolio management system data is synched into Salesforce daily, so such rebalancing of accounts is reflected promptly.

Take a look at the diagram below:

Salesforce CRM: The Great Organizer

We’ve now reviewed the basic flow of financial information. Here’s how Salesforce adds value throughout this process:

• Automation & reporting

Salesforce analytics and reporting are powerful tools. Advisors can survey clients’ financial status at a glance and create automated responses. For example, your team could create an alert to call customers if they ever have more than $100k in cash.

Another scenario that calls for automation is that Mr. Holmes may call his advisor – Watson – and request to move money. He has an investment account and a trust for his children and wants to transfer assets from one to the other. Because call records are tied into the CRM, Watson can simply stay within Salesforce and create an automated request to move the money.

This request goes from Salesforce to the custodian, where the activity takes place. Later, Salesforce records are auto-updated to reflect the new balances.

• Inclusion of stakeholders

Overseeing client accounts gets complicated when you consider all stakeholders. For instance, Mr. Holmes, the primary account owner, has a spouse listed on the account. He also has a dependent, who is the beneficiary of the account and a lawyer who acts as signatory.

Whereas other systems are more limited, Salesforce properly records and takes all these stakeholders into consideration. Salesforce also has the flexibility to assign a part of the total wealth to Mr. Holmes’ household and another portion to his child’s household. There are endless possibilities for any configuration a client desires.

• Tracking life changes

Mr. Holmes informes his advisor Watson that he’ll be spending his summer months in the Hamptons. As Salesforce CRM tracks all client data in one place, Watson never has to switch between systems. Salesforce will push the new address to the custodian, which will feed back into the portfolio system.

Of course, this same principle applies to any other client life changes as well.

Wealth Management 2.0

Wealth management has been and always will be highly relationship-driven. Clients expect their advisors to stay on top of every detail and communicate frequently. No client should ever feel forgotten or like they’re merely an account number.  

Digital transformation with Salesforce enhances this detail-oriented business model. Advisors save time since all information is stored in one place, while granular reports lead to quicker insights. This allows firms to provide better, more personal client experiences.

If you’re intrigued by financial data flowing with the precision of clockwork, contact our team. We’ll make sure your wealth management practice is a well-oiled machine.