Practice Management

Top Advisers Let Tech Do the Heavy Lifting

“Advisers who embrace technology—especially solutions to more efficiently handle tedious recurring client-service tasks—are going to be the ones who scale, grow and ultimately win.”

By John Manganaro editors@strategic-i.com | June 20, 2017
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Fidelity Clearing and Custody Solutionsthe division of Fidelity Investments that provides clearing and custody to registered investment advisers (RIAs), retirement recordkeepers and broker/dealers, first launched its recurring “eAdviser” study in 2014.

Since then the number of advisers deeply embedding digital technology solutions into their value proposition has increased by 10%, from 30% of the adviser population in 2014 to 40% by the end of 2016. On average, this group of technology-enabled advisers are using twice as many different technologies as their peers, Fidelity explains, and they are also using these technologies more deeply and rationally within their businesses.

The stats surrounding these eAdvisers show deeper use of the latest client-facing and back-office technology is associated with higher total assets under management and assets managed per-client. At the same time, tech-committed advisers report higher satisfaction with their firm environment and career prospects than tech-indifferent advisers.

“What’s more, the study shows that eAdvisers are running their businesses in smart, strategic ways and thinking about the future,” Fidelity Clearing and Custody finds. “More than half have client segmentation strategies, versus 40% of ‘tech indifferent’ advisers, and they indicate this contributes to enhanced productivity and asset/revenue growth. eAdvisers are also more likely to be planning for the future by serving more Gen X/Gen Y clients and planning to augment their services with digital advice within the next two years.”

Tricia Haskins, vice president, practice management and consulting, Fidelity Clearing and Custody Solutions, observes that advisers who embrace technology—especially solutions to more efficiently handle tedious recurring client-service tasks—are going to be the ones who scale, grow and ultimately win.

“While there’s still a lag in adoption among many advisers, it’s less about the lack of appetite for technology, and more about not knowing where to begin,” she says. “We believe advisers who can visualize what their clients’ end experience will look like, and map technology from there, will achieve the deepest and most tangible business results.”

NEXT: Technology to tackle the tedious