Tech giants like Salesforce and Microsoft have mastered the art of scalable growth. What if your advisory firm could do the same? Like Software as a Service (SaaS) companies, modern wealth management firms find that true growth comes from scalability—building systems and processes that deliver more value without simply adding headcount.
Today, advisors face mounting pressure to deliver personalized services while keeping operational costs in check. Scaling efficiently has never been more critical, and the lessons learned by SaaS companies over the last 15 years can help advisors unlock their growth potential. Wealth management firms can use these insights to stay competitive, build deeper client relationships, and create a scalable growth model for the future.
The Challenge of Growth in Wealth Management
Growth in the advisory world often starts with hiring more staff or onboarding more clients. It’s a natural evolution of a service-based relationship business—more people should mean more revenue. However, this “horizontal growth” often leads to rising costs that grow in lockstep with revenue, leaving little room for profitability or innovation. To scale effectively, advisors need to rethink their operations, their practices and their technology, by making key strategic decisions. The goal is to build great businesses with a focus on recurring revenue growth.
Lessons from SaaS Companies
SaaS companies have cracked the code on scalable growth, focusing on four critical areas:
- Technology and Accessibility
SaaS firms leverage digital tools to deliver services at scale. Similarly, advisory firms can use platforms like SS&C’s Black Diamond® Wealth Platform to streamline operations and improve client engagement. - Recurring Revenue Models
In SaaS businesses, recurring subscriptions ensure steady, predictable income. Wealth management mirrors this model with three key revenue streams: acquiring new clients, retaining them, and expanding their value. Expansion isn’t just about asset growth—it’s about offering additional services that deepen relationships and drive revenue. To succeed, advisors must excel in all three areas, balancing acquisition with retention and maximizing opportunities for growth. - Managing the Phases of Growth
Growth is exciting, however expanding too quickly or not iterating on processes until too late may cause friction and excessive rework. Advisory firms should look at patterns of growth and understand which phase they are in, and how to move on to the next phase given their strategic priorities. - Client-Centric Innovation
Continuous improvement is key to SaaS success. Wealth management firms can mirror this by refining their client journeys and delivering consistently high-value experiences. Keep in mind, every interaction with a client is the “Client Experience” advisors provide. Every interaction should be considered with empathy. Advisors only earn recurring revenue by achieving their client’s goals.
Key Industry Trends Shaping the Future
The future of wealth management is being shaped by service inflation and shifting generational wealth. Moreover, increased M&A activity is redefining the competitive landscape for advisors, requiring firms to rethink how they deliver value and achieve sustainable growth.
Wealth management firms must address these shifts with strategic agility, leveraging technology, building lasting client relationships, and adopting efficient growth models to stay ahead.
Strategic Levers for Advisory Firms
Acknowledging the fundamental difference between software companies and advisory businesses is crucial. While software can scale toward near-zero marginal cost—an advantage that has fueled explosive SaaS growth—advisory firms will always rely on human expertise.
The industry’s attempt at a pure SaaS model, epitomized by robo-advisors, has largely fallen short of expectations. However, the hybrid robo-advisory model, which combines automation with human touchpoints, has shown some promise. To achieve meaningful scale, advisory firms must carefully pull the right levers, balancing technology and personalized service to drive growth without sacrificing client experience.
- Streamline the Client Journey
Optimize every step of the client journey—from awareness to loyalty—by identifying efficiencies and maintaining personalization. Automating onboarding, for example, reduces administrative burdens while enhancing the client experience. - Shift from People-Centric to Process-Centric Growth
Superstar advisors and founder-led efforts fuel early success, but scalable growth requires consistent, repeatable processes. Building an “advice factory” strikes the right balance between tailored services and operational efficiency. - Prioritize Retention and Expansion
Retaining clients is more cost-effective than acquiring new ones. Expanding services—such as offering tax-efficient strategies or generational wealth transfer planning—can deepen relationships and boost revenue from existing clients. - Leverage Inorganic Growth Through M&A
Mergers and acquisitions can accelerate growth, but only if executed thoughtfully. Firms need a clear strategy to integrate acquired practices without disrupting their core operations.
The Path Forward in Modern Advisory Practices
The future of wealth management lies in scalable growth that offers the human touch, supported by repeatable and consistent processes and technology. By adopting lessons from SaaS companies, even service based businesses like wealth management firms can position themselves for success in an increasingly competitive and complex market.
To drive scalable growth and stay ahead in an evolving wealth management landscape, equip your firm with the tools that top advisors trust. To learn more, request a personal demo of the SS&C Black Diamond Wealth Platform, call 1-800-727-0605 or email info@advent.com.
