Amid the wealth management industry’s rapid consolidation, many firms are grappling with operational challenges that are growing more and more complex. While mergers and acquisitions promise scale and growth, they bring with them the monumental task of unifying disparate systems, processes and data. The Sycamore Company, led by founder Mike Overdorf, is helping firms overcome these challenges with its Salesforce-native, cloud-based platform that streamlines operations and empowers organizations to unlock the potential of their data.
As firms are increasingly asked to do more with less, technology from companies like Sycamore is playing a crucial role in mitigating administrative burden so firms can spend more time focusing on people and growth. Digital Wealth News recently connected with Overdorf to ask him about these trends, as well as what he sees coming over the horizon.
Digital Wealth News: Given the acceleration of M&A and consolidation in wealth management, how is Sycamore helping firms scale and succeed in an increasingly competitive environment?
Mike Overdorf: As rampant consolidation continues to reshape the wealth management industry, firms at the center of this trend are faced with increased operational complexity, especially as they work to unify distinct processes, technology and data. Sycamore is helping firms overcome this complexity with a cloud-based platform that makes it easier for them to manage and pay advisors, meet compliance and audit requirements and, perhaps most importantly in this scenario, bring together disparate data and unlock its potential for creating efficiencies and driving growth. By delivering real-time access to clean, high-quality data, Sycamore is empowering firms to make faster, more informed decisions as they scale. Whether they are growing through acquisition or growing organically, we’re focused on delivering a platform that provides a foundation for doing more with their data.
DWN: As firms work to do more with less, how is technology reducing complexity so they can place more focus on people and growth?
Overdorf: The wealth management industry is increasingly challenged by the fact that complexity is an impediment to scale. Many firms are wasting valuable time managing siloed systems, relying on outdated technology and reconciling data from numerous sources. Sycamore’s goal is to simplify all of this so firms can focus their efforts on what matters more — supporting advisors, delivering maximized value to clients and driving growth. We accomplish this by streamlining operational workflows via an end-to-end platform that puts several critical business functions all in one place. It’s never been more important for firms to eradicate redundancy so more time can be spent on high-value work.
DWN: With the heightened market volatility amid fluctuating U.S. economic policy, what wealthtech trends do you see emerging over the next year?
Overdorf: Market volatility not only acts as a stress test for investor portfolios, it also challenges the strength of a wealth management firm’s infrastructure. As a result, I think we’ll see the industry begin to place greater emphasis on data agility. Enterprises need better solutions for real-time business intelligence, which will help them to quickly adapt to rampant change. Data-driven insights into everything from how advisors are performing to the presence of operational inefficiencies will help firms stay ahead amid heightened turbulence.
Sycamore is also paying close attention to the rising confluence of compliance and technology, a trend we expect will grow even more as firms grapple with evolving regulatory scrutiny. As regulations shift, the industry’s hunger for automated solutions for meeting compliance requirements will intensify.
