Bad tech costs advisers money and clients

Bad tech costs advisers money and clients
Though 58% of the advisers and executives surveyed classified their technology as 'modern,' 65% reported losing business because of outdated software.
NOV 15, 2022

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Advisor360 classified their technology as “modern,” 65% reported losing business from clients or prospects because of outdated software.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.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

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.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

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.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“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.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

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.