Tech Platforms—Expanding Margins and Advice in Wealth Management

Wealth management is evolving rapidly. With the rise of automation, artificial intelligence (AI), and fintech platforms, technology has become essential for scaling personalized advice while keeping operational costs in check. However, the real power of technology lies in its ability to serve as a human advice multiplier—enhancing the expertise of wealth managers—and as a margin expander, driving operational efficiency in a time of shrinking margins.

At the same time, fee compression, particularly with the rise of robo-advisors, passive investment strategies, and increased client demands has created pressure on traditional wealth managers to justify their fees.

While fees may have begun to level off, margins for wealth management firms have continued to shrink. The pressure remains for wealth managers to deliver more value while controlling costs. This trend is particularly noticeable as younger, tech-savvy generations inherit wealth and expect seamless, digital-first financial experiences.

To navigate this landscape, wealth managers must adopt technologies that empower them to deepen client relationships, expand service offerings, and reduce costs. Platforms like interVal are at the forefront of this transformation, offering tools specifically designed to help wealth managers serve one of the most underserved yet high-potential market segments—small and medium-sized business (SMB) owners—while addressing the broader industry challenges.

The Role of Technology as a Human Advice Multiplier

For wealth managers, relationships have always been the cornerstone of success. Clients seek more than just financial guidance; they want advice tailored to their personal circumstances, lifestyle, and future goals. Yet, as client expectations grow, so does the complexity of managing those relationships.

Technology acts as a human advice multiplier by augmenting advisors’ ability to serve clients with greater precision, scale, and personalization. It’s not about replacing human advisors but amplifying their capacity to deliver high-value advice.

Here’s how technology, particularly platforms like interVal, multiplies human advice:

1. Real-Time Data and Business Valuation Insights: A significant challenge for wealth managers serving SMB owners is the complexity of integrating business assets into personal financial planning. interVal provides real-time data and automated business valuations, allowing advisors to include business value in financial planning without needing costly third-party valuations. This helps wealth managers offer more holistic advice, strengthening client relationships by addressing both personal and business finances.
   
   
2. Automated Data Discovery: Wealth managers can leverage AI and machine learning to uncover and analyze critical business financial data at scale automatically. Platforms like interVal streamline this process, generating actionable insights by continuously scanning and interpreting relevant business financial data. This automated data discovery enables wealth managers to offer highly customized, data-driven advice with minimal manual input. In a world where clients expect tailored solutions instantly, the ability to deliver real-time, personalized business insights is a key differentiator, helping advisors stay ahead in meeting client needs.
   
   
3. Behavioral Finance for SMB Owners: Wealth managers increasingly incorporate behavioral finance insights into their advice. Platforms like interVal enhance this capability by offering tools that better understand SMB owners’ financial behaviors. This allows wealth managers to anticipate key events, such as a business exit or liquidity event, and offer proactive, personalized advice at the right time.
   With these tools, wealth managers can maintain the personal touch clients expect while scaling their services to meet the demands of a growing client base. Technology doesn’t replace human insight; it enhances it.

Technology as a Margin Expander in a Time of Fee Compression and Shrinking Margins

Fee compression has been a major concern for wealth management firms, as competition has driven down pricing for years. More recently, while fees are still at risk, the cost of delivering advice and service has risen, leading to tighter margins for wealth management firms. This presents a new challenge: how to offer differentiated, high-value services without eroding profitability.

Technology, especially platforms like interVal, offers a path to margin expansion by driving operational efficiency and unlocking new revenue opportunities.

Here’s how interVal plays a critical role in expanding margins:

1. Efficiency Through Automation: Tasks like data entry, compliance management, and business valuations have traditionally required significant time and expense. Platforms like interVal automate these processes, reducing administrative overhead and freeing up time for wealth managers to focus on higher-value activities. By lowering the operational burden, wealth managers can serve more clients without increasing headcount or costs.
   
   
2. Access to Untapped Markets: Traditionally, wealth managers have focused on high-net-worth individuals, leaving SMB owners underserved. interVal enables wealth managers to tap into this lucrative market by offering tools specifically designed to address the complex needs of business owners. By helping advisors better understand and plan for business liquidity events, interVal creates new revenue opportunities from clients whose personal wealth is tied to their business success.
   
   
3. Proactive Client Targeting: Platforms like interVal provide wealth managers with insights into how clients approach key financial events, such as selling their business. This allows wealth managers to proactively offer services around these transitions, converting business-related advice into personal wealth management opportunities. The ability to anticipate and act on these events before competitors is a key differentiator in an increasingly competitive landscape.
   
   
4. Revenue from Expanded Service Offerings: interVal allows wealth managers to offer value-added services beyond traditional portfolio management. By integrating business valuations, succession planning, and real-time financial insights, advisors can position themselves as holistic financial partners for SMB owners. This expanded service offering deepens client relationships and increases revenue potential from personal and business assets under management (AUM).

Addressing Shrinking Margins with Value-Driven Services

In a world where fee compression is still a concern, and margins are still shrinking, wealth managers must offer differentiated, value-driven services that justify their fees while controlling costs. Platforms like interVal help achieve this balance by offering wealth managers the tools to provide specialized, high-impact advice at a lower operational cost.

Clients are willing to pay for advice that delivers clear, actionable value—especially if it addresses complex needs like business transitions, estate planning, or succession strategies. By leveraging technology to deliver these services more efficiently, wealth managers can expand their client base, reduce costs, and grow margins, even in the face of fee pressure.

The Future of Wealth Management is Hybrid

The future of wealth management isn’t about choosing between human expertise and technology; it’s about integrating the two. Wealth managers who embrace platforms like interVal can deliver more personalized, effective advice at scale, all while expanding margins and staying competitive in an environment of stabilized fees and shrinking profitability.

Technology becomes an indispensable partner as wealth managers face the dual challenge of rising client expectations and shrinking margins. interVal helps wealth managers multiply their human impact and expand their profitability by providing real-time business insights, automating routine tasks, and unlocking new revenue streams from SMB owners. The advisors who adopt these tools will not only survive but thrive in the future of wealth management.

By incorporating interVal into their practice, wealth managers can harness technology to serve clients more effectively, expand their reach, and protect their profitability in an ever-changing industry. As fee compression stabilizes and margins tighten, technology isn’t just an option—it’s a necessity.

Author: Matt Beecher