Fidelity Institutional Wealth Services today released findings from its 2013 RIA benchmarking study which found high-performing firms are seeing 50 percent more growth, 30 percent increases in profitability and 50 percent higher productivity than other eligible firms.

Fidelity classifies high-performing firms as the top 25 percent of eligible advisory practices that demonstrate excellence in the areas of growth, profitability and productivity. To be considered eligible to participate in the study, firms had to meet certain criteria such as assets under management of $50 million or more. In addition, merger or acquisition activities had to contribute no more than 25 percent of the change in AUM between 2010–2012.

“In addition to attracting and retaining more of the right clients, high-performing firms are focusing on more effectively harnessing the technology they have instead of chasing the very latest innovations,” said David Canter, executive vice president and head of practice management and consulting, Fidelity Institutional Wealth Services.

According to the study, high-performing firms were focused on creating strong technology environments by investing in their current systems:

• Seventy-four percent described their technology as strong, not cutting-edge.

• Investing in technology is a priority for 47 percent of high-performing firms, as compared to 34 percent of other eligible firms. Only 12 percent of high-performing firms invest in the “latest and greatest” technology.

• 67 percent of high-performing firms ranked integrating existing systems in their top three technology investments.

• Disruption to their business is the biggest challenge when integrating systems for 60 percent of high-performing firms compared to 43 percent of other eligible firms.

• 77 percent of high-performing firms were more likely to cite improving their clients’ experience and satisfaction as a top technology goal versus 61 percent of other eligible firms.

“As new technologies come to market, RIA firms that see technology as a vehicle for success—not a measure of success—will rise to the top,” said Cantor.

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