Choosing the wrong technology can cost financial advisers money and clients, according to a survey from fintech company Advisor360.
Though 58% of the 300 advisers and executives at broker-dealers surveyed by Advisor360 classified their technology as “modern,” 65% reported losing business from clients or prospects because of outdated software. Only 3% said their technology was “integrated and innovative.” The remaining 39% said they need an upgrade.
Of those who reported losing business because of technology, more than half said it came from prospects. A third of all respondents said their current technology is holding them back when it comes to new business.
Onboarding remains a challenge, with 25% of those surveyed calling it a “constraint” to bringing in new clients.
“Firms that can’t innovate to today’s standards or don’t stack up to peers are leaving money on the table,” Richard Hart, senior vice president of corporate development at Advisor360, said in a statement.
Advisers’ biggest gripes with technology are a lack of automation and functionality. Scheduling, running and reconciling reports before client meetings is taking 41% of advisers an average of two hours, while 26% said they are spending even longer.
Firms also have work to do on improving the digital client experience. Providing a complete picture of a client’s financial life is the most important aspect of the experience, according to those surveyed, but 43% said their technology is primarily adviser-facing. A quarter would like to see account aggregation capabilities improved.
They survey did uncover some good news for adviser fintech. Advisers gave existing wealth management platforms high marks for enabling them to focus on their most important clients and deliver robust financial planning.
Advisers who feel they have modern technology are 50% more likely to report growth in new client assets and 33% more likely to get client referrals compared to those who need an upgrade.
“Firms with the right technology improve their advisors’ ability to offer robust financial guidance and form deeper client connections, which ultimately translates into strong, healthy businesses,” Hart said.
LPL Financial and Raymond James also add independent advisors from Osaic and Edward Jones in Michigan and Arizona.
The SEC-registered RIA advises on more than $1 billion in client assets, with no advisory fee through 2027 and no human financial advisors.
The four wirehouse firms lost 1,449 experienced advisors and recruited 932 in the first six months of the year, according to Diamond Consultants.
Merit's 10th Commonwealth addition deepens its Western New York reach, while another Hightower partner joins its Signature Wealth platform in Michigan.
Report on Climate Action 100+ signals risk for passive managers' 13G status heading into the 2027 proxy season.
Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
