Financial advisors have shown almost unanimous support for using financial technology products for key elements of their working week. A poll of more than 800 advisors across the U.S. shows that 95% reported using fintech for processes such as trading and clearing, portfolio rebalancing and investment analytics.
Less than 4% of respondents said they never use fintech for trading and clearing, making this the most popular use, although this is usually software provided by an advisor's home office rather than third-party solutions.
However, the survey conducted in May and published this week by ISS Market Intelligence reveals that solutions provided by asset managers (26% of advisors said this) and other third-party firms (41%) are commonly used for investment analytics.
Among those asset managers providing analytics solutions, BlackRock is the most popular among advisors — used by 26% of respondents, almost 10 percentage points ahead of Morgan Stanley in second place.
Asset managers’ software is also frequently used by advisors for direct indexing (24%) and portfolio construction (29%), with Vanguard rated the best for direct indexing by advisors although wirehouse advisors prefer Morgan Stanley.
In the RIA channel, where direct indexing solutions are used the least, Schwab and Vanguard are the preferred providers.
For portfolio construction, all three advisor groups ranked BlackRock’s Aladdin software as their favorite.
Asked about the things that matter most to them when choosing a fintech to use, respondents were clear.
Eighty percent said ease of use is most important, but best-in-class features (43%) and level of integration (44%) are also key factors.
However, peer recommendations and existing longevity and reputation matter less, which may encourage more competitors to offer innovative solutions to advisors.
“With only 5% of advisors considering market longevity and 2% considering peer recommendations as their number one factor, newcomers to the fintech market can be optimistic that managers will seek out the highest quality product, not the most entrenched,” said Greg Bawin, head of U.S. research at ISS Market Intelligence.
From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.
Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.
“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.
Sellers shift focus: It's not about succession anymore.
Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.
RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.
As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.
