Wealth advisement firms that lean into technology use show faster growth rates across both client attraction and assets under management, according to an annual best practices survey released by Fidelity Investments Monday.
In the survey of 426 advisory firm leaders, partners, and technology decision-makers, Fidelity found that firms leveraging digital technology showed client growth rates of 20% versus 8% for all other firms. Meanwhile, AUM at those tech-savvier firms was up 22% versus 11% for others.
“Firms spend significant time evaluating and introducing new technology, but it’s just one part of the equation,” says Jessica Liberi, head of platform technology for Fidelity Institutional. “Activation is equally important. A firm can only reach the full potential of its technology stack if advisers know how to implement the tools strategically selected to support them.”
As wealth management services grow in importance in part due to workplace retirement plan participants seeking more individual financial planning, a firm’s embracement and use of technology will be a key differentiator, according to Fidelity’s findings. But the industry has work to do: 36% of those surveyed work at firms designated as “digitally empowered” as compared to 64% who don’t.
Fidelity designated digitally empowered firms as those who use statistical clustering analysis based on advisers’ responses about their firms’ use of technology. Factors that differentiated services included the use of technology to create unique client experiences, quickly implementing new tech-driven features, evaluating tech-based strategies and needs and providing adequate training and resources to advisers regarding technology.
Client Services
Technological capability is playing a major role in servicing clients both quickly and efficiently, according to the report.
Among firms designated as “digitally empowered,” 66% report that their clients view their processes and work flows as efficient, as opposed to 39% at other firms. In addition, of advisers at tech-savvier firms report clients view their websites as easy to use, as opposed to 47% at other firms.
More readily available online access for clients was shown in the following areas:
| Likelihood of: | More Digitally Empowered | Others |
| Offering clients access to financial and other information via client portal and/or mobile app | 80% | 57% |
| Sending text messages or push notifications about managing finances, market volatility or other topics | 64% | 27% |
| Offering online learning tools including videos/tutorials and calculators | 60% | 33% |
| Providing interactive and/or digital client experiences including transactions, requests and chat | 53% | 27% |
Time Savings
Another key finding of the report was the ability for technology to save an adviser’s time on routine tasks, opening up more time for clients and prospecting.
More broadly, advisers at more digitally empowered firms were found to be more productive and efficient, reporting AUM per adviser of $172 million versus $117 million at other firms, and with 163 clients per adviser at tech-savvy firms versus 143 clients per adviser at other firms.
Meanwhile, digitally empowered advisers showed greater efficiency across processes including:
| Efficiency in: | More Digitally Empowered | Others |
| Money Movement | 76% | 47% |
| Trading and Rebalancing | 71% | 37% |
| Account Maintenance | 69% | 34% |
| Customer Onboarding | 60% | 36% |
| Financial Planning | 52% | 32% |
Finally, Fidelity noted more career satisfaction among advisers at tech-forward firms. Among those in that group, 81% expressed satisfaction with their firm versus 59% for all other firms.