Advisers using more tech but fewer platforms

Mike Taylor

Managing Editor/Publisher, Financial Newswire

25 July 2023

Many financial advisers have reached the stage where they cannot service many of the clients who need their services and will need to look for answers in technology.

That is one the key findings of the latest Investment Trends Adviser Technology Needs Report, with the company’s head of research, Irene Guiamatsia saying the average number of clients serviced by any single advisers appears to be “slowly but surely approaching Dunbar’s cognitive limit”.

She said this renders considerations of scale, digital engagement and the broader role of technology more pertinent than ever.

However, the report also confirmed that financial advisers are cutting back on the number of platforms they use, with 43% of advisers now only using two platforms, a significant increase on last year.

Guimatsia said that the Adviser Technology Needs Report confirmed that the pace at which advisers are embracing technology is continue rise and that an increasing number of those advisers are willing to pay extra to access more technology.

“There is no subsiding in the interest advisers express for seamless data transfers between the various systems they use,” she said.

“While the focus remains on traffic between planning software and investment platforms, there is also substantial demand for integrations with bank accounts, trading tools, and appointment scheduling software – all of which can support advisers in meeting this growing client demand.”

Discussing advisers using fewer platforms, Guiamatsia said that despite the consolidation that had occurred, 12% of advisers remained open minded about alternative platform solutions.

“Platform providers therefore have every interest in seeking to better understand what advisers are looking for and offer an appropriate solution that’s going to best help them, help their clients,” she said.

In a first this year, the report features a deep dive into advisers’ self-assessment of the preparedness of their practice to cyber incidents, as well as potential applications for generative AI tools such as ChatGPT. Advisers appear rather welcoming of ChatGPT and similar tools, with 11% expecting a ‘very positive’ impact and another 44% expecting a ‘positive’ impact.

“Advisers with a positive outlook of the role of AI, see quick wins in the areas of research/modelling, data analytics, reporting, but also cybersecurity. These are all areas mentioned to a much greater degree than digital advice is,” added Guiamatsia.