Advisers see increased opportunity in new fintech tools

Financial advisers are still struggling to adapt to new wealth management norms, and are asking fintech companies for new technology to help bridge the gap. 

While the vast majority of advisers are happy with their current technology capabilities post-pandemic, they see massive opportunities to increase adoption and fuel growth in both client acquisition and assets this year, according to a recent study from Broadridge Financial Solutions Inc. and the Financial Services Institute. 

The biggest driver of growth in 2022 could be digital prospecting. Eight in 10 advisers agreed new tools would enhance client acquisition, and more than 32% said they were looking to find new clients outside of their current geographic location through virtual tools, like videoconferencing. 

Advisers expect to increase their video conferencing usage in the next 12 months, and more than half of the advisers surveyed said they are still conducting formal meetings virtually via phone or video chat.

Tech companies are listening to advisers and launching new products and services. AssetMark Inc., the third leading turnkey asset management platform  by assets, this week announced the launch of two new tools to help advisers find and land new clients, including a digital prospecting tool and digital marketing platform. 

Michael Raneri, chief digital innovation officer at AssetMark, said the pandemic has shifted much of everyday life online and advisers will need to stay up-to-date with the changing preferences of clients. 

“The wealth management industry is no different than the rest of the world in that it has evolved dramatically due to digitalization,” Raneri said in an email. “As investors become increasingly accustomed and preferential to managing much of their financial lives digitally, advisers need to be able to engage with potential clients in that way.”

Digital marketing is another major area where advisers have indicated they will increase their technology spend. Nearly 50% of advisers surveyed said they would boost digital marketing spending, according to InvestmentNews’ 2020 Adviser Technology Study. 

AssetMark’s new marketing platform, announced Thursday, makes a host of videos, articles, emails, social media and infographics available to advisers with an available integration into an existing customer relationship management system, according to a release.

As the turn to digital continues to change the financial services landscape, social media is playing an increased role in advisers' outreach to clients, according to the study. LinkedIn (77%) and Facebook (67%) are the social media platforms that are most widely used by advisers for both business and personal use, opening up yet another digital channel where advisers can interact with clients virtually.

“Advisers are taking advantage of this wave of digital transformation to provide investment ideas, offer financial literacy tools, discuss ESG trends and connect with clients and their families in new ways,” Chris Perry, president of Broadridge and a board member of FSI, said in a statement. 

The survey, which was fielded in November, reached a total of 493 financial advisers and employees of financial advisory firms.