While AI hasn't completely taken over advisors' tech stacks, it's clear that they see it as more of an opportunity than a threat, based on a new survey from Orion.
That was one of many insights revealed in the fintech leader's latest quarterly financial advisor pulse survey, which CEO Natalie Wolfsen unveiled to advisors in attendance at the Future Proof Festival in Huntington Beach, California.
"We have a profound understanding of the unique challenges today’s advisors face, including the complexities of integrating disparate tech stacks and the increasing demand for personalized client experiences and investment management," Wolfsen said in a statement announcing the results.
According to Orion's survey of users on its platform, a growing number of advisors are exploring AI, though some remain hesitant. Currently, 33 percent of Orion advisors use AI in their practices, and 42 percent are experimenting with how it could assist them.
Nearly half (46 percent) of advisors expect to incorporate AI into their firm’s strategy within the next three years. However, 36 percent of advisors are still fearful of implementing AI, reflecting the challenges some face in adapting to emerging technologies. On the other hand, 28 percent consider themselves knowledgeable about how to use AI effectively in their business.
The survey also showed a split in terms of advisors' preferred tech mix. According to the survey, 55 percent of Orion advisors favor a combination of bundled and unbundled tech platforms. For those who prefer bundled solutions (27 percent), the main advantage is the streamlined experience created by integrated technology. Meanwhile, 10 percent of advisors prefer unbundled systems, citing the flexibility to select best-of-breed tools for a personalized tech stack – which isn't necessarily the way to go.
When it comes to the 2024 presidential election, advisors reported 43 percent of their clients are asking how it could impact the stock market, while 26 percent are questioning whether they should adjust their portfolios ahead of the vote.
Orion's survey also shed new light on advisors’ high-net-worth strategies. An 84 percent majority of advisors consider HNW investors crucial to their firm’s growth, and 80 percent are actively working to expand their client base in this segment.
Not surprisingly, the competition for these investors—defined as individuals with over $1 million in investable assets—is intensifying, with 82 percent of respondents seeing more advisors jockeying for high-net-worth business. To bolster their appeal, 80 percent of advisors said they currently offer "basic" services for high-net-worth clients, and 66 percent provide "advanced" offerings, such as direct indexing, foreign currency management, behavioral finance, and alternative investments.
The firm's latest additions, led by a second-generation financial advisor, are striking out via its Linsco employee advisor channel.
The Fidelity-owned fintech aims to help advisors connect with mass market and mass affluent prospects with single-goal conversations.
The prospective chair of the agency has pledged to shed conflicted interests and "return common sense to the SEC."
'If I were on the side of Alpine Securities, I’d put all my eggs in the federal court,' one attorney said.
If approved, the proposed revisions would achieve outcomes similar to the existing process while reducing the burden of oversight.
Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.
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