Registered Investment Advisors (RIAs) and wealth managers often face decision fatigue when comparing Customer Relationship Management (CRM) systems. The looming shortage of wealth advisors in the US – the industry faces a shortage of roughly 100,000 advisors – means that the future of PE firms, financial advisors, and wealth managers in the United States will be increasingly busy. To offset the workload, professionals are becoming more scrupulous in their pursuit of trustworthy CRMs.
Salesforce and Redtail are both utilized for private equity firms, financial planners, and investment bankers. Both Salesforce and Redtail offer task management, automated client communications, and integration with other financial tools.
But where do they differ? We compared Salesforce and Redtail to provide you with a targeted report on which one will work best for your team.
At Platinum Cubed, we help individuals in the financial service sector wade through options and discuss key benefits to determine which CRM is best, and then we guide you through to enjoying a smooth integration.
The world of technology is easier with people who can help.
Migrating data or switching platforms later can create operational disruptions. That’s why it’s crucial to define your CRM needs early. We understand that uncovering the core reasons why you need a CRM takes discussion. For instance, certain options that feel small, like whether you expect things to be entered at the contact level or household/client level, can turn out to be colossal.
Here at Platinum Cubed, we know just how important it is to have a CRM that is completely customizable and reliable in the financial sector.
Salesforce: Key Features for Wealth Managers
- Customization: Superior
- Reputation in the Financial Sector: Excellent
- Scale Potential: High
Financial Services Cloud
Salesforce Financial Services Cloud (FSC) offers relationship management tailored for wealth managers, including family office structures, multi-family households, and advisor collaboration. Salesforce contains an unflagging ability to personalize at scale.
Individual practitioners looking to scale are never limited by Salesforce. It contains enterprise-grade scalability, an ideal asset for any company with complex marketing operations.
AI-Driven Insights
Automation with Einstein AI provides insights into client behaviors and helps advisors anticipate the needs of each client. Since RIAs are fiduciaries who have a legal and ethical duty to act in their clients’ best interests, Einstein becomes a valuable tool to double-check key figures. It streamlines onboarding by integrating data analysis, allowing you to have a much easier time collecting client data using pre-configured templates. You’ll be able to share disclosures, consent forms, and other onboarding documentation digitally. Financial advisors can also verify client information seamlessly across devices.
Client and Household Management
Private capital firms need analytics tracking both individual clients and entire households. Metrics for these relationships reveal where profits occur, deal progress, cross-industry connections, and pathways for warm introductions. Salesforce tracks firm-wide network data and identifies engagement patterns across teams.
Choosing Salesforce empowers private equity firms to embrace data-driven strategies and achieve high-level implementation across the organization.
Compliance and Regulatory Tools
With AppExchange, Salesforce really shines. AppExchange offers apps designed for specific industries and compliance needs, like healthcare and finance, ensuring apps meet relevant regulations like SOC 2, SOX, NY CyberSecurity & FINRA.
Furthermore, Salesforce can be customized to create compliance workflows and audit trails, ensuring your team of advisors meets fiduciary standards.
Success in implementing Salesforce FSC depends on selecting the right partner with expertise in wealth management who can tailor the solutions you need.
Redtail: Key Features for Private Equity Firms
- Customization: Minimal
- Reputation in the Financial Sector: Inconsistent
- Scale Potential: Moderate
Client Management
Redtail offers simple, efficient tools for managing client information, tracking financial data, and documenting client-advisor interactions. It helps advisors track investment details, client goals, and portfolio performance.
However, at Platinum Cubed, Redtail’s updates appear less frequent and incremental compared to Salesforce’s ongoing enhancements, which may be a consideration for firms seeking continuous innovation. You can see this when you compare the almost imperceptible release notes for Redtail vs the most recent ones of Salesforce.
Activity Management
Advisors can schedule tasks, set reminders, and manage appointments. They will be able to ensure timely follow-ups and build relationships. Redtail supports client communication via email, allowing advisors to create and send newsletters or updates. But it almost seems as if Redtail doesn’t pay close attention to user feedback. They added an AI “response suggestion” feature into Speak almost as if they were determined to be among other CRMs implementing AI, but they lack advanced automation features entirely. We’ve noticed that much of their focus is on the Orion / Redtail integration capabilities. While that is incredibly beneficial for businesses that use Orion, for everyone who doesn’t, it feels counterproductive. Redtail requires tasks to be tied to calendar events, which may limit flexibility in simple task tracking.
Compliance and Regulatory Tracking
Redtail offers built-in compliance workflows that help advisors maintain fiduciary standards and document client communications to meet regulatory requirements, such as FINRA. It’s also much easier to set up and use than other CRMs, probably because it was built with smaller wealth management firms in mind.
But Redtail loses points for its low customization levels. For firms with complex needs, this can feel limiting.
Conclusion
For firms focused on scaling, advanced automation, and AI-driven insights, Salesforce stands out. Platinum Cubed ensures a smooth transition by tailoring your CRM implementation to your goals.
At Platinum Cubed, we specialize in equipping you with the knowledge you need to onboard your team and get them using the best tool available.
Start with a no-hassle, no-cost consultation today.