Tech-focused wealth firms win on multiple counts, says Fidelity

Tech-focused wealth firms win on multiple counts, says Fidelity
Survey of more than 400 advisors reveals impact of technology on client growth, AUM expansion, and service delivery.
APR 29, 2024

A new Fidelity Investments study reveals that wealth management firms with a strong technological orientation see significantly better growth, improved client experiences, and enhanced advisor satisfaction compared to their less digital-focused counterparts.

The findings come from an online survey conducted from November 9 to 24, garnering responses from 426 licensed and credentialed advisors, including some firm leaders and technology decision-makers.

According to the study, technology-forward firms, which apply best practices in strategy, design, and activation of technology, experience faster growth in client numbers (20 percent on average, vs. 8 percent for other firms) and assets under management (22 percent vs. 11 percent). These firms also report greater job satisfaction among advisors, who enjoy higher compensation and an improved ability to serve their clients effectively.

"Our study underscores the impact of technology as a growth driver for wealth management firms that harness its full potential," Marissa Herr, head of Technology Consulting for Fidelity Institutional, said in a statement.

She emphasized the significant market differentiation that can be achieved by strategically thinking about the platforms, integrations, and tools that best meet the needs of advisors and their clients.

The survey revealed that digitally empowered firms, regardless of size and including various types of broker-dealers and RIAs, are three times more likely to leverage technology to enhance the client experience.

Mirroring the results of a recent report by Cerulli, Fidelity found advisors at tech-empowered wealth firms note increased efficiency across critical functions such as money movement, trading, portfolio rebalancing, account maintenance, customer onboarding, and financial planning.

Furthermore, employees at technology-forward firms often benefit from an enterprise-wide technology strategy and a clear process for evaluating technological solutions. These firms also feature a high integration of valuable day-to-day platforms, contributing to streamlined workflows and better service delivery.

"Firms spend significant time evaluating and introducing new technology, but it’s just one part of the equation," stressed Jessica Liberi, head of Platform Technology for Fidelity Institutional.

"Activation is equally important. A firm can only reach the full potential of its technology stack if advisors know how to implement the tools strategically selected to support them," Liberi said.

Trust at the heart of Zhang Financial's success

Latest News

Financial advisors, what is your volatility game plan for client management?
Financial advisors, what is your volatility game plan for client management?

With targeted "comfort calls" and strategically automated follow-ups, advisors who leverage their CRM systems effectively can show up when clients need them most.

Trump eyes no taxes for Americans making less than $150k, says Lutnick
Trump eyes no taxes for Americans making less than $150k, says Lutnick

The plan could offer $24,000 in relief for some taxpayers, but experts warn of consequences.

No new trial for convicted GPB Capital executives
No new trial for convicted GPB Capital executives

"I've seen lots of denial in this business but this GPB thing take the cake," says one industry executive.

BlackRock-led deal for Panama Ports draws ire from China
BlackRock-led deal for Panama Ports draws ire from China

Commentary from state-owned publication blasts sale to investor consortium as "spineless groveling," denting Hong Kong-based firm's stock.

Gold soars past $3,000 as Trump turbocharges record rally
Gold soars past $3,000 as Trump turbocharges record rally

Higher interest rates and a strong US dollar, which traditionally act as headwinds, haven't deterred market-stung investors from seeking refuge in the yellow metal.

SPONSORED Beyond the all-in-one: Why specialization is key in wealth tech

In an industry of broad solutions, firms like intelliflo prove 'you just need tools that play well together'

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies