Wealth management firms are grappling with rising pressures to deliver fast, personalised, and insightful advice to clients. But while expectations grow, many advisors are weighed down by inefficiencies, particularly the mounting problem known as “toggle tax.”
This term describes the productivity drain caused by constantly switching between multiple systems and applications throughout the advisory process.
LSEG, recently delved into how wealth management can solve toggle tax and boost efficiency.
Decision-makers now face a critical challenge: how to streamline operations, simplify advisor workflows, and enhance the client experience. The answer lies in building seamless, interoperable systems that reduce friction and allow advisors to focus on client engagement rather than navigating complex digital environments, it said.
In many wealth management organisations, advisors are forced to juggle an array of disconnected systems—ranging from CRM platforms and portfolio management software to market data feeds and communication apps. This fragmented structure creates disjointed workflows, fosters data silos, and leads to duplication of tasks. The result is wasted time, higher risk of error, and ultimately, a weaker client experience. According to a McKinsey, growing system complexity has significantly raised cost bases across wealth management firms, turning toggle tax into a strategic vulnerability rather than just an operational nuisance.
However, wealth management firms willing to invest in digital transformation have a major opportunity to overhaul the advisor experience. By integrating systems and adopting interoperable platforms, firms can unify workflows, improve collaboration, and speed up decision-making.
Achieving this seamless experience requires firms to take a holistic approach to digital transformation. Instead of deploying isolated solutions, wealth managers need to build fully connected ecosystems that support the entire advisory process. Key strategies include embracing interoperability to allow systems to share data easily, standardising workflows across the organisation, and centralising communications into unified hubs that consolidate alerts and updates.
Leveraging intelligent automation is another essential pillar. AI and machine learning can suggest next best actions, surface key insights, and automate routine tasks, freeing advisors to focus on more strategic and high-value client engagements. Open architecture also plays a crucial role, enabling firms to avoid vendor lock-in and customise their technology stacks according to evolving business needs. By integrating CRM, portfolio management, and research platforms, firms can provide advisors with a complete, real-time view of each client’s portfolio and needs.
Sune Mortensen, global head of wealth solutions at LSEG, captured the core challenge, stating, “I consistently hear the same need from our wealth management clients: advisors don’t need more tools – they need less steps. That’s why we partner closely with firms to simplify the advisor experience and help them deliver tailored, reliable advice with confidence every time.”
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