How the best firms take the mystery out of advicetech success

Published 3 May 2021

Effective use of technology drives business success for financial advisers. Businesses that invest wisely in technology – who think ahead, budget and execute to a plan – are more likely to be profitable than businesses that resist technology or invest in it only because they must. More AdviceTech Stars than any other segment report margins of 20 per cent or more.

Netwealth’s 2020 AdviceTech Research Report presented a clear picture of the advice industry’s AdviceTech Stars, and how they are different from the rest of the advice industry. It showed how the best advice firms’ attitude towards and implementation of technology helps them stand out from the pack.

The 2021 AdviceTech survey is now open, and it’s an opportunity for all financial advice business owners to contribute to the collective tech knowledge of the advice industry and to learn from the experiences of others.

The AdviceTech Research survey is how advice firms share how advicetech has affected the practice management, servicing clients and delivering advice. In return, participants in the survey will receive an advance copy of the 2021 AdviceTech Research Report, giving early access to market intelligence and insights into the best implementation strategies and the most-used advice technologies.

The 2021 report will examine how advice practices’ technology investment plans are unfolding and the impact they’re having, as well as how they have dealt with the disruption of a global pandemic and how they’re placed to deal with the digital and technology challenges of modern business, including cyber-security issues.

Last year the AdviceTech Stars showed they were already relatively well-placed to cope with disruption and dislocation, with more firms in this cohort than in any other likely to be generating margins of more than 20 per cent.

Last year’s report, produced by Netwealth in collaboration with CoreData Research, demonstrated that advice businesses don’t have to be large to be AdviceTech Stars and to reap the benefits of well implemented technology investment. More than half of the best users of advicetech are advice firms with fewer than 500 clients. The mindset of the advice business owner, and their attitude towards technology investment and use, plays a significant role.

The key benefits to the businesses have been clearly shown to include better client engagement and communications, improved quality of advice, and greater client satisfaction. And investing intelligently in technology presents new opportunities for advice, including growth in client numbers, revenue and funds under advice, as well as improving the affordability of advice for clients and opening the door to offer new services and products.

While many firms shy away from proactively investing in technology, the Netwealth AdviceTech Research Report shows clearly that advice firms which invest proactively and map out a clear technology roadmap reap the benefits in the form of higher revenue and higher profitability, underpinned by a reduction in costs.

Don’t miss your chance to share your thoughts and experiences on how advicetech is shaping and supporting your business and the services you offer, and to be among the first in the industry to gain access to these deep industry insights.

CoreData Research

CoreData is a global market research consultancy and unique collaboration of market research, media, industry and marketing professionals.