Advisors Are Underutilizing Financial Technology

Advisors overwhelmingly feel that they aren’t doing enough with the digital and automation tools available to them, according to a Cerulli Associates study.

The survey also found that advisors feel largely secure against cyberattacks and that clients value robust technology platforms and the ability to access their accounts on mobile devices.

“As next-generation investors age and accumulate or inherit assets, practices must adequately prepare for a client base that will not only seek a consultative approach but also a more collaborative experience,” said Donnie Ethier, director of the wealth management practice at Cerulli, in a statement.

The study found that 75% of advisors feel they could get greater leverage from the technology tools at their disposal, though 73% felt that their practices are currently prepared for cybersecurity threats.

Fifty-eight percent felt their clients value access to their accounts on mobile devices, and 54% said clients value a “robust” technology platform. Advisors were split on whether broker-dealers are up to par, with only 49% saying their broker-dealers’ technology platforms were easy to use.

Technology as a recruiting tool also came into question, with only 38% of advisors saying that their practice’s technology helps them identify high-impact client outreach opportunities.

The study also noted that older advisors aren’t as resistant to new technologies as some people think, especially when older and younger advisors are on the same team.

“Despite common beliefs, most executives observe older advisors adopting mobile CRM systems at rates similar to those of younger advisors,” the study said. “Firm leaders often note a correlation between older advisors being early adopters of the tools and having younger employees on their teams.”

When RIAs were asked what their focuses were for their technology investments over the next year, the areas they cited most as “high priority” were their efforts to improve cybersecurity (51%), to improve data management and analysis (31%) and to update older technology (26%).