How do today’s successful Registered Investment Advisors (RIAs) demonstrate more significant value to clients in our ever-changing world? According to Aite Group research,1 advisors believe that digitization enhances client engagement, services, and the overall experience.

In addition, digitization provides an opportunity for advisors to improve practice efficiency and capacity to expand client services and their client base. With these insights and best practices in mind, we have identified six steps to help RIAs manage a digital transformation for their practice.

Here are six steps to digital transformation:

1. Develop a formal digital strategy

For RIAs, research shows that many initial attempts at digitalization were partial implementations or disjointed efforts. RIAs employing best practices build a digitalization strategy using a deliberate and formal process encompassing the entire business.

2. Conduct a client service review

Identify your digital support needs and client preferences by reviewing and assessing your client segmentation and services. For example, take inventory of the services you provide clients daily, weekly, quarterly, and annually, and match them to the digital capabilities you currently have and what you would need to add.

3. Develop a client segmentation strategy

To prioritize the rollout of digital tools, many RIAs have made material changes or revamped their client segmentation to better identify client service needs. Developing client segmentation is essential for creating a digital or hybrid advice offering.

4. Identify dedicated technology resources

Best practices call for building digital strategies using dedicated resources and funding. Committing personnel to manage the process is considered one of the most critical components to success.

5. Conduct provider and vendor reviews

RIAs often work with their current providers to create their digital strategies. However, many still conduct vendor reviews, especially when creating the digital or hybrid advice offering.

6. Engage in active client communications and training to drive adoption

Clients need to understand the benefits that digital tools provide and how to access and use the tools. Position the use of digital tools as a positive with new and existing clients and as an additional choice and convenience to help reinforce your relationship.

Learn More

To learn more about the action steps you can take to manage a digital transformation for your practice, read RIA Roadmap: 6 Steps to Digital Transformation here. Want to discuss how you can partner with Tamarac to begin your digital transformation? Visit or give us a call at 866-525-8811.

  1. Aite Group, “RIA Digital Transformation: A competitive necessity in a Post-Pandemic Marketplace,” May 2020.
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