Choosing the right technology can make or break an advisory firm’s efficiency, profitability and client experience. Whether you decide to buy vendor software or build a system in-house, the impact extends far beyond day-to-day workflows. It influences how your firm grows, integrates data and scales over time.
So how do you decide what’s right for you? Let’s look at a practical framework that helps you weigh when building makes sense and when buying is the smarter, more strategic choice.
When It Makes Sense to Build
Creating technology in-house gives firms more control, but it also requires significant time, talent and maintenance. Here are three situations where building might make sense.
1. Proprietary needs and data control
Building your own system allows you to create technology that supports your firm’s proprietary processes. It can give you tighter control over how data is stored, shared and accessed internally, which may appeal to firms that prioritize strict internal governance or unique operational structures.
2. Competitive differentiation
Some firms want to create an in-house tool that gives them a competitive edge. When you build something unique to your process or niche, you have the flexibility to design around your exact needs and client base. The trade-off is that maintaining that edge takes constant upkeep, development and ongoing costs.
3. Specialized functionality
For firms that serve specialized clients or offer complex products, certain tools might not exist off the shelf. In that case, building a custom application tailored to your workflows can make sense. The challenge is balancing that control with the resources it takes to support, secure and scale that system over time.
When It Makes Sense to Buy
Buying software often gets dismissed as “one-size-fits-all,” but established vendor platforms exist for a reason. They’re proven, supported and continually improved. Here’s when buying is the smarter move.
1. Back-office automation
Automation is now essential for efficient firms. Tasks like onboarding, client data collection and document processing all benefit from automation that reduces manual work and human error. Building automation from scratch is expensive and time-consuming. Buying a platform with built-in automation features lets you benefit immediately from tools that are already tested and refined.
2. Compliance and security
Compliance is non-negotiable. Buying software that already meets regulatory requirements and integrates compliance workflows gives your firm peace of mind. A trusted vendor has the infrastructure, experience and audit processes to ensure your data and documentation remain secure.
3. Speed of adoption
Getting a new system up and running quickly matters. Vendor software comes with onboarding resources, support and training that help teams adapt faster. Building internally can take months or even years before the tool is usable. Buying a ready-to-deploy platform gets your team working efficiently right away.
The Best of Both Worlds: Customization Within Vendor Platforms
The smartest strategy for most firms is a hybrid approach. Buy a strong foundation, then layer custom features on top of it.
This gives you flexibility to tailor workflows without starting from scratch. Many vendors partner directly with advisory firms to build specialized tools or custom integrations that meet unique needs. The result is a system that combines reliability, scalability and personalization.
By working with a vendor that offers open integrations and flexible data structures, your firm can extend functionality while avoiding the costs and complexity of building your own infrastructure.
Why PreciseFP Fits
PreciseFP is the award-winning data-gathering platform built to simplify how advisors collect, manage and share client data. It’s deeply integrated across the wealth management tech stack, often syncing more than 200 fields with CRMs, planning software and custodial systems.
Firms use PreciseFP to handle everything from risk tolerance questionnaires and service agreements to eSignatures, document delivery, and client disclosures. It powers faster onboarding, more accurate financial planning and smoother new account openings, without needing to chase clients for missing information.
PreciseFP gives you the flexibility of a customizable solution without the burden of building your own.
