Blog Article

2023 RIA Tech Survey: RIA Portfolio Management and Reporting Systems

Jun 28, 2023

In this 2023 survey series, we will cover the types of practice management solutions that are available to RIAs, and more importantly, which ones are favored among your peers.

In this blog post, we’ll be delving into the top RIA portfolio management and reporting systems that RIA firms prefer.

The findings in this blog post come from RIA in a Box’s annual survey, which was conducted in the first quarter of 2023.

In our last blog post, we talked about the top document storage solutions that RIA firms prefer. Before that, we talked about the top RIA portfolio management styles RIA firms prefer. This time, we’ll be delving into the findings from our annual survey results in response to the portfolio management and reporting systems used by RIA firms and explore the trends over the years.

RIA Adoption Rate of Portfolio Management and Reporting Systems

RIA firms add portfolio management and reporting systems to their tech stacks to increase operational efficiencies and strengthen the firm’s competitive advantage. Solutions that integrate well with others can be especially valuable to firms. RIA in a Box integrates with Morningstar OfficeBlack Diamond and Orion to provide real-time updates on compliance needs, eliminating the time-consuming demands of tedious manual entry processes.

Not all RIA portfolio management and reporting systems are built the same, which is why RIA firms must evaluate their business goals and needs before selecting the software that is right for them. 

RIA in a Box’s annual technology survey revealed that 46% of RIA firms report using portfolio management and reporting systems. While 46% of RIA firms reported using portfolio management and reporting systems in 2022, 2021 marked a slight decrease in adoption from the previous year. It’s also worth mentioning that RIA portfolio management and reporting systems are often one of the most expensive technology solutions within a firm’s technology stack. While such a solution can add value to a firm and enhance customer experience, many firms may be investing less in these types of solutions due to a shift in priorities and budgeting.

RIA portfolio management and reporting system adoption by firm assets under management size

Generally, RIA firms adopt portfolio management and reporting management systems as their assets under management (AUM) increases. This year’s survey results indicate this as well. For instance, RIA firms with less than $5 million in AUM have an adoption rate of 12%, whereas RIA firms with $100 million or more in AUM have a 35% adoption rate.

The top RIA portfolio management and reporting systems

The competitive landscape of RIA portfolio management and reporting systems is very fragmented, with no dominant market share leader. According to this year’s survey, Morningstar and Orion share the largest market share at 19%. Black Diamond comes in third with 12% of the market share. We continue to see a steady stream of new emerging entrants in this category and expect the innovation race to continue as technology providers identify opportunities to cater to RIA firms of all sizes. 

RIA portfolio management and reporting systems are one of the most important technologies RIA firms can use to enhance customer experience and streamline processes. However, finding the right one can be challenging!

RIA firms of all sizes encounter the challenge of finding solutions that fit their budgets and address their specific business needs. As RIA consultants, we understand the daunting nature of this task, especially as firms grow. Therefore, we’ll continue to look into how RIA firms like yours are addressing these very same challenges.

Tune in next week for a look at how RIA firms are using financial planning software providers and how they have gained popularity among RIA firms.