Independent financial advisors navigating a fast-changing marketplace are hungry for new technology experiences that can help them better serve a new generation of investors.
Advisors understand that growing requires continuously evolving their practices. They also know that technology will be the force that enables that transformation and helps them connect to younger investors who are tech-savvy, independent, and curious about emerging asset classes like crypto and private markets.
Three-quarters (76%) of the independent financial advisors taking part in a recent study from Broadridge and the Financial Services Institute say better technology would make it much easier to acquire new clients. The advisors also recognize how technology can release them from administrative tasks and free up time that can be used directly serving clients. Specifically, advisors are looking for solutions that streamline day-to-day functions like account opening and client onboarding, paperwork automation, and financial planning tools.
However, nearly 70% of the advisors say they are not very confident their firm’s current technology fully supports their growth goals. Those concerns span both the daily operational environment, and the infrastructure needed to support emerging asset classes that are making up a growing portion of client demand.
More than half of the advisors report increased client interest in cryptocurrency, 31% are receiving more inquiries on alternative assets and 28% are seeing growing interest in private markets. But even as interest surges, fewer than one in three advisors feel very confident advising clients in these areas. Getting advisors fully prepared to guide clients through these relatively new and complex asset classes will require a combination of enhanced education, data, and technology.
Advisors acknowledge that some of the technology gaps aren’t due to a lack of resources, but rather their own lack of expertise. More than eight in 10 advisors (82%) say that better training and greater awareness of available technology would help them more effectively drive business growth.
A Call to Action
These findings point to an important industry opportunity: helping advisors fully activate the value of existing and emerging technology investments through stronger enablement. Advisors are asking for tools that unlock growth. As a result, firms that continue to invest in innovative digital capabilities can expect enthusiastic adoption among advisors and meaningful returns in the form of enhanced productivity and client acquisition. To unlock those returns, firms should pair technology rollouts with education and training that introduces advisors to the new tools and teaches advisors how to use them.
Those conclusions apply to all technology tools, but especially to artificial intelligence. Half of all advisors and two-thirds of advisors under the age of 45 are already using generative AI today, especially for client engagement (29%) and marketing (21%). That’s a strong signal that advisors increasingly view AI as a meaningful differentiator for growth, efficiency, and client engagement.
What will it take to accelerate AI adoption? It’s not a coincidence that current AI use is highest among large firms and lags among the smallest practices. That gap reflects a difference in resources. However, at this point in the adoption curve, it’s unlikely that a lack of resources is preventing smaller firms from adopting AI capabilities, which are available at a wide range of price points. Instead, it’s more likely that larger firms are using their budgets to deploy teams that help introduce AI by educating advisors about the technology and demonstrating practical use cases.
Investing in Innovation, With Confidence
Advisors are rolling up their sleeves and retooling their practices to better serve a new generation of investors. As they work to make that change, many advisors are struggling to find and implement the technology tools they need.
In some cases, advisors are looking for more integrated and intuitive technology experiences that better align with their evolving business needs. However, in most cases, wealth firms have deployed innovative tech, but advisors aren’t aware of it, don’t understand what it does, or how to use it.
The good news is that advisors are eager for new technology, which they increasingly view as the key to client acquisition and growth. With advisors firmly on board, wealth firms can have confidence that investments in integrated technology, advisor education, and practical enablement will help accelerate growth, productivity, and stronger client relationships.
