73% of financial planners and paraplanners are open to adopting new technology. Are you?

Past, present, and future of technology and devices, from typewriter to computer.

By AdviceBridge

As more financial advice firms embrace new technology to boost their business capability, your firm could be at risk if you fail to keep up to date with the latest technological changes.

According to research from specialist wealth consultancy, NextWealth, although most advisers are satisfied with their current tech stack, many continue to keep an eye on new technology that could help improve business efficiency and client experience. 

The report included two surveys from 908 financial advisers, financial planners, and paraplanners. Findings revealed that 73% are open to adopting new technology, while around 17% are actively planning to add new technology in the next 12 months.

Tech adopted during the pandemic

According to Heather Hopkins, who was quoted in ProfessionalAdviser, much of the tech that firms were forced to adopt during the pandemic worked so well that it’s now hard to live without it. 

Now, an unprecedented number of advisers actively scan the market to find new tech solutions to power their businesses.

98% of advisers who plan to add new technology are independent and 92% are directly authorised. In each camp, these firms are also taking on new staff and many have plans to acquire other financial advice businesses.

The survey reveals that size makes a difference, too

Employees of medium-sized (£250 million to £499 million) and small firms (less than £250 million) are significantly more open to adding a new technology partner.

Meanwhile, those in larger firms are less likely, although 20% said they are planning to do so.

Medium-sized firms are most likely to be already in the process of adding a new technology partner.

The right technology can help a business run more efficiently with lower risk

Tech stacks that support financial advice businesses are among the most dynamic areas of disruption in wealth management.

Technology can help a business run more efficiently and with lower risk, yet many advice firms are left frustrated by their tech stack. 

The requirement to re-key data is a particular bug bear.

In speaking with advisers, paraplanners, and admin staff in financial advice businesses NextWealth have provided a wealth of detail about how firms and their employees feel about adviser tech – including platforms, back-office systems, suitability and risk profiling, cashflow modelling, and client portals.

Key findings include:

  • Advisers believe that platforms offer the best value for money
  • Back-office systems score worst in offering value for money
  • It is believed that client portals, better integrations, and common data standards will help reduce re-keying
  • Quasi-integration is being used to control costs, boost profits, and control the customer experience
  • Some firms are returning to a single source approach to tech as a result of poor integrations.

Back-office systems and cashflow modelling tech lead from the front 

Unsurprisingly, the survey showed a 16% increase in the use of client portals during the pandemic, with 70% of financial advisers using them. Significant use was also shown for back-office systems, cashflow modelling, and risk profiling:

  • 88% of firms said they used back-office systems
  • 80% said they used cashflow/scenario modelling 
  • Risk profiling and suitability tools also showed a 4% increase during the pandemic.

With tech stacks designed to support financial advice firms continuing to evolve at a rapid rate, it’s clear that tech can help every firm deliver a better experience more efficiently.

If you haven’t invested in upgrading your tech to keep pace with the changes, AdviceBridge could provide significant improvements.

Adding AdviceBridge to your tech stack can help your business, and your clients 

Through automation, AdviceBridge enables you to effortlessly deliver financial plans to a far wider range of clients profitably. The system helps gather information, analyse what is held and how it should be structured before producing a recommendation report for you to present to your client.

The intelligent software replaces the unengaging, complicated, and time-consuming tasks with engaging, insightful, and meaningful information and recommendations.

With seamless integration with other elements of your tech stack, AdviceBridge frees up more of your time to focus on the all-important client relationship.

The simple and meaningful interface also helps to engage clients with their financial planning journey, retaining their interest and attention into the future.

Get in touch

To find out how adding AdviceBridge to your stack can benefit your business and help you service more clients profitably, please get in touch. Email hello@advicebridge.com, book a demo, or call us on 020 3925 3850.