The Technology Myth

Technology MythAs industry participants, as well as observers, we are often fascinated by the efforts that many of our competitors take to tout their technology “advantage” to prospective recruits. While legitimate differences may exist between the technology offerings of different firms, the reality for many firms – and therefore their advisors – is that there is not always a direct correlation between a firm’s investment in technology and the service that’s provided to their advisors. In many cases, it’s the exact opposite that occurs.

By committing to the development of a proprietary platform, a firm must spend considerable sums of money on not only developing, but also maintaining and upgrading, the technology. While under circumstances this may make sense, the reality is the more advanced the technology, the lower the adoption rate among advisors, especially among older advisors who place significant value on the advisor-client relationship (and not the underlying technology). More importantly, once a firm makes a commitment to a proprietary technology platform, they must forever continue to fund that platform. For firms that are under pressure to grow earnings, the requirement to continue to support the platform means that other significant areas of advisor and client service typically tend to suffer.

Alternatively, firms such as Summit Brokerage are committed to providing their advisors with “best of breed” technology. In other words, rather than developing its own technology, Summit Brokerage utilizes the best technology available from software firms and application providers that do nothing other than develop technology. In this way, Summit Brokerage makes certain that its advisors always have access to the technology platforms that best meet the needs of their advisors.

It is precisely for the reasons previously stated that advisors who are evaluating making a change to a new firm ask themselves following questions: Do I want my broker-dealer devoting its resources to developing and maintaining a proprietary technology platform, or would I rather have access to the best technology that’s available from a broker-dealer that can fully commit its resources to providing exceptional services to its advisors.

For more information on Summit Brokerage Services, visit or contact us at (800) 354-5528.

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