Verity Larsen is the founder and Chief Executive Officer of Versoft Consulting, an independent investment technology consulting firm.
For over two decades, Verity has worked alongside investment firms. In her experience, she has learned that technology decisions are rarely just about systems; they’re about people, relationships, and priorities, and how well those elements are aligned to support growth and client service.
In recent years, rapid advances in technology have forced firms to reassess not only the tools they use, but how they allocate budgets, structure teams, and ultimately serve their clients.
In this post, Verity shares her perspective on when and how firms should evaluate their investment technology — and the practical steps they can take to ensure technology strengthens operations, supports employees, and positions the firm for what comes next.
A Thoughtful Approach to Evaluating Your Investment Technology
In the fast-paced world of investment management, technology evaluation rarely rises to the top of the priority list. Most firms I work with are — understandably — focused on serving clients, navigating market shifts, and capturing the next opportunity. Technology tends to run quietly in the background, and as long as it does, it’s assumed to be “good enough.”
In my experience, that assumption is one of the biggest risks firms take.
Fully understanding the impact of what’s working — and what isn’t — rarely surfaces in the day-to-day. You can’t see the full picture while you’re in the middle of it.
That’s why a meaningful technology assessment requires intention. It means stepping out of the daily grind and intentionally taking time to critically examine how work is actually getting done.
For many firms, June is an ideal time to do this. Tax season has passed, client demands often ease slightly, and teams have a bit more breathing room. Whatever the timing, the key is to schedule it deliberately — and protect that time.
Once it’s on the calendar, the real evaluation can begin.
Start by examining your day to day operations with a clear, honest lens. Where does work consistently slow down? Where are deadlines missed or tasks delayed? Where do people feel overwhelmed, even though the volume of work doesn’t seem unreasonable?
These pressure points signal that something isn’t working and can be used to define the right resource to fix it. Do you actually need to hire, or are inefficiencies creating the illusion that you do?
Today, advances in technology — especially with the rise of AI — are accelerating rapidly. As a result, firms have more options than ever to create efficiency, visibility, and scale without adding to headcount.
But without taking the time to assess technology and operations together, you won’t know which path is right.
Budgets: Aligning Technology Investment with Human Value
No matter who they serve — institutions, consultants, or high-net-worth individuals — investment firms are in the business of relationships. To maintain those relationships, firms must ask: Where does a human truly need to be involved, and where can technology do the heavy lifting?
For building trust, exercising judgment, and delivering advice, there is no substitute for human interaction. These moments are where firms create value and differentiate themselves with authenticity. Humans should be focused on serving humans.
But not all work requires human judgment. Repetitive, rules-based tasks — such as data entry, form completion, workflow triggers, follow ups, and consistency checks — are areas where technology has a clear advantage. When technology handles this work, it reduces friction, minimizes error, and frees people to focus on higher value client engagement.
For many financial services firms, this mindset shift can be challenging. The industry has historically been slow to adopt new technology, and hiring has often been the easiest — or most familiar — solution to growing demand.
Sustainable growth, however, requires firms to carefully evaluate where technology can absorb increased workload before defaulting to additional hires. Making those decisions intentionally is a critical part of any technology assessment.
The Great Wealth Transfer Resets Investor Expectations
The great transfer of wealth from baby boomers to their heirs only heightens the importance of this focus on technology.
This next generation of clients is digitally fluent and compares their investment experience to their other digital experiences. They expect the real-time access, transparency, and intuitive interfaces they receive everywhere else.
That reality demands a rethink of budgets. For decades, technology may have been a relatively small line item. Today, it must be viewed as a strategic investment — one that enables automation, streamlines operations, and creates capacity for deeper, more meaningful human interaction.
Begin With the End in Mind: The Value of an Open Mindset
During technology assessments, I often see firms focus immediately on a single platform they want to replace. They’re unhappy with this one system, and the assumption is that moving to a new one will solve the problem.
That mindset is where many firms get stuck. By assuming the problem lies with a single platform, they miss the opportunity to step back and question whether the workflows, handoffs, and decisions surrounding that system still make sense.
I also see teams walk through an existing process — sometimes a ten-step workflow — and say, “If we just automate this one step, we’ll save five minutes a day.”
While incremental improvements can help, that’s rarely where the biggest opportunity lies. The more important question is whether the process itself still makes sense given today’s business, clients, and technology.
That’s why an open mindset is critical. Instead of asking how to improve individual steps, step back and consider whether the process would be designed the same way if you were starting fresh today. Could those ten steps be streamlined, reorganized, or approached differently to better support the outcome?
At Versoft, this is the approach we take in our assessments. We start by defining the end goal. What are you trying to deliver to your clients? What information does management need to run the business effectively? What does the board need to see? What kind of business intelligence are you trying to gain?
Only by starting with outcomes — and looking at the entire ecosystem — can firms design workflows and technology that truly support their goals. Without that broader perspective, it’s easy to invest time and money into changes that improve individual pieces of the puzzle, but never quite move the business forward.
Understanding the Risks and Rewards of AI
Nearly every firm I work with wants to talk about AI during a technology assessment. While that focus makes sense, I am always quick to reframe the conversation.
Because the biggest risk in AI adoption isn’t the technology, it’s data strategy.
Too often, firms assume their data is AI ready simply because it exists. In reality, years of system conversions, manual workarounds, inconsistent tagging, and siloed platforms have left many organizations with fragmented, unreliable, or poorly structured data.
AI doesn’t fix bad data. It amplifies it, and it does so with great confidence.
Without a clear understanding of data sources, quality, and governance, firms risk producing insights that look authoritative but are fundamentally flawed. That risk extends beyond internal decision-making into client communication, regulatory exposure, and long term trust.
Before any firm can responsibly adopt AI, I tell them they must first do the unglamorous work:
- Inventory and understand their data sources
- Validate accuracy and consistency
- Clean and restructure data where needed
- Establish clear ownership and governance
Only once that data foundation is in place can AI become an accelerator rather than a liability.
Another common misstep is treating AI as a standalone feature instead of part of a broader operating ecosystem. Firms don’t run on a single platform; CRM systems, portfolio accounting, reporting tools, custodians, and external providers all shape daily workflows.
AI that operates in isolation — touching only one system — delivers limited and often misleading value.
The real opportunity follows a clear sequence: integration first, automation second, and advanced intelligence last. Without seamless data flow across systems, even the most sophisticated AI capabilities fall short of their promise.
Amid all the excitement surrounding AI, its value ultimately depends on the systems behind it. Without a system of record to provide context, governance, and persistence, AI outputs can’t be trusted or scaled. Experience remains essential — not just to use these tools effectively, but to recognize when they’re wrong.
The Value of a Disciplined Technology Assessment
In the end, modernization isn’t about chasing shiny objects or betting on a single breakthrough. It’s about discipline — committing to regular assessment, defining clear end goals, and making thoughtful investments that support long-term strategy rather than short-term hype.
For firms willing to take this measured approach, innovation becomes sustainable instead of reactive. That discipline — more than any single tool or trend — is what allows organizations to lead through change, adapt with confidence, and remain relevant long after today’s technology headlines fade.
To learn more about how investment management firms are approaching technology modernization, watch this recent webinar hosted by Institutional Investor featuring myself and Tim Duffy, Senior Solutions Manager at SS&C Advent.
Verity Larsen is the CEO of Versoft and a senior leader with more than 20 years of experience in the investment management industry. She co-founded the firm in 2015 following a successful tenure as a Team Lead and Senior Consultant at SS&C Advent.
Verity drives Versoft’s consultative approach, ensuring the consistent delivery of high quality client outcomes while advancing team expertise through ongoing training and professional development. She also leads strategic relationships with technology vendors and service providers, helping keep Versoft at the forefront of industry platforms, tools, and solutions.
