Financial advisers seek better system integration and standardised industry solutions to increase business efficiency
Leading research firm Investment Trends has released its latest 2022 Adviser Technology Needs Report, which uncovers the evolving technology needs of financial advisers in two parts focusing on their usage of platforms and planning software.
According to the 2022 report, compliance burden (65%), the ability to provide affordable advice (41%), and regulatory change (40%), continue to be the main challenges for advice businesses. As advisers turn towards using multiple technology solutions to support them, including Client Relationship Management systems (CRMs) and standalone modelling tools, they are expressing a greater need for integration between the systems they use.
“Affordable advice is a key concern across the industry, with advisers looking to technology solutions to support their ongoing compliance and client engagement. Greater integration can make a material difference and has also been proven to boost confidence levels.” said Dougal Guild, Research Director at Investment Trends.
The research also revealed that advisers face significant delays regarding the implementation of their advice, in a process often prone to errors. Two-thirds of advisers say they would use an end-to-end solution to minimise the delays and errors currently occurring between advice delivery and implementation. Accordingly, advisers believe planning software providers are best placed to be able to deliver this solution.
“It’s encouraging to see advisers’ rising adoption of technology solutions, however with this comes an increasing need for greater integration and standardised industry solutions to increase practice efficiency while minimising the time spent on compliance.”, added Guild.
The study found that with more advisers turning to technology to help combat their many challenges, they are intending to increase their practice’s current annual spend on technology from the current estimated average of A$146,000 to A$216,000.
“It’s reassuring to see advisers’ rising adoption in technology solutions and intentions to increase annual spend on these solutions going forward, making the advice preparation and implementation process more streamlined and effective.”, said Guild.
