Wealth Management: Solving for toggle tax and driving efficiency

• Wealth advisors face significant inefficiencies due to constantly switching between disconnected systems, leading to fragmented workflows, data silos and reduced productivity—commonly referred to as "toggle tax."
• Firms can unlock advisor efficiency and improve client outcomes by embracing interoperability, standardising workflows, and integrating systems to create a seamless, unified advisory experience.
• By investing in open platforms, intelligent automation, and centralized communication, decision-makers can reduce operational friction, scale personalised advice, and empower advisors to focus on high-value client engagement.
• Advisors don’t need more tools, they need less steps. That’s how we solve for toggle tax.

In today’s fast-paced financial landscape, wealth management firms are under increasing pressure to deliver personalised, timely, and insightful advice to clients. Yet, many advisors find themselves bogged down by operational inefficiencies—most notably, the persistent challenge of "toggle tax." This hidden cost of switching between multiple applications and systems not only drains productivity but also hampers the advisor’s ability to deliver high-value client experiences.

For decision-makers, the imperative is clear: reduce friction, streamline workflows, and empower advisors with the tools they need to thrive. The solution lies in embracing interoperability and reimagining the advisory workflow.

Wealth advisors today operate in a fragmented digital environment. Their daily tasks often require toggling between disparate systems—CRM platforms, portfolio management tools, market data terminals, and communication apps.

This results in:

• Fragmented workflows that disrupt focus and reduce productivity
• Data silos that hinder collaboration and insight generation
• Duplication of effort that wastes time and increases the risk of error

This “toggle tax” is more than an inconvenience—it’s a strategic liability. According to McKinsey^[1], many wealth management firms have seen their cost bases rise significantly due to increased complexity and fragmented systems. Advisors spend valuable time navigating systems instead of nurturing client relationships or generating investment ideas. The result is a diminished client experience and a missed opportunity for firms to differentiate themselves in a competitive market.

Despite these challenges, there is a significant opportunity for firms willing to invest in digital transformation. By enabling interoperability across platforms, wealth management firms can:

• Unify the advisor experience through consistent, firm-defined workflows
• Enhance collaboration by breaking down data silos
• Accelerate decision-making with real-time access to relevant insights

McKinsey’s 2024 research highlights that firms embracing digital tools and interoperability are seeing improved advisor productivity and client satisfaction. Imagine an advisor seamlessly moving from a client record in Salesforce to a portfolio view in LSEG’s Advisor Dashboard, or from a security overview in a back-office system to detailed analytics in LSEG Workspace—all without switching contexts or losing data continuity.

This is not a distant vision. It’s achievable today through open platforms, standardised communication protocols, and smart integration strategies.

To address the inefficiencies caused by toggle tax, wealth management firms must take a holistic approach to digital transformation. Rather than focusing on individual tools, the emphasis should be on creating a connected, intelligent ecosystem that supports the advisor’s entire workflow. Here are some key strategies to consider:

1. Embrace Interoperability: Enable seamless communication between systems and applications. By ensuring that platforms can share data and context, firms can eliminate redundant steps and reduce the need for manual data entry or switching between tools.
2. Standardise Workflows: Develop firm-wide workflows that are consistent, repeatable, and aligned with compliance standards. This not only improves efficiency but also ensures a uniform client experience across the organization.
3. Centralise Communication: Implement a unified notification and communication hub that consolidates alerts, updates, and client interactions. This helps advisors stay informed and responsive without being overwhelmed by fragmented messages.
4. Leverage Intelligent Automation: Use AI and machine learning to surface relevant insights, suggest next best actions, and automate routine tasks. This allows advisors to focus more on strategic decision-making and client engagement.
5. Prioritise Open Architecture: Invest in platforms that support open APIs and flexible integrations. This reduces vendor lock-in, lowers development overhead and allows firms to tailor their tech stack to evolving business needs.
6. Enhance Data Accessibility: Break down data silos by integrating key systems—such as CRM, portfolio management, and research tools—into a single, accessible environment. This empowers advisors with a 360-degree view of their clients and portfolios.
7. Support Scalable Advice Models: Enable the creation and distribution of firm-wide investment views and recommendations through digital channels. This helps scale personalised advice while maintaining consistency and compliance.

The future of wealth management hinges on the ability to deliver personalised, data-driven advice at scale. For decision-makers, this means investing in platforms and strategies that eliminate toggle tax, foster interoperability, and empower advisors to focus on what matters most: building lasting client relationships.

By leveraging the right solutions and tools, firms can transform fragmented workflows into cohesive, intelligent advisory journeys. The result? Greater efficiency, stronger collaboration, and a competitive edge in an increasingly digital world.