Managing technological needs remains one of the biggest challenges for advisors, according to the latest Cerulli Edge-The Americas Asset and Wealth Management Edition.
According to the research, the most frequently identified challenges in using technology include compliance restrictions that limit functionality or impose other limitations on advisors’ ability to use technology (73%), followed by a lack of integration between tools/applications (71%), and a lack of time to learn and implement (70%).
Since the COVID-19 pandemic, advisors have significantly increased their use of technology. While adoption has proven to be a boon for practices that have incorporated these types of tools, the industry still has a long way to go, the report notes.
Additionally, there is an opportunity for central offices and fintech companies to strengthen the training and support they offer.
“Many of the challenges advisors identify in using technology are challenges that can be overcome through knowledge-sharing efforts to educate and inform advisors about the potential power of more effectively leveraging the technology tools they already have at their disposal,” says Michael Rose, director.
However, according to the study, only half of the advisors are satisfied with the training and support they receive. More structured advisors, who can better leverage specialized technology and offer more comprehensive services to their clients, represent one of the most important market segments for software providers, brokers, and custodians, who are the primary technology providers for these advisors.
“Given the great importance that advisors place on the technology at their disposal, it is crucial that brokers/dealers, custodians, turnkey asset management providers, and other companies that provide technology platforms to advisors obtain sufficient and ongoing feedback to ensure that the technology stack they offer remains aligned with the evolving needs of the practices they serve,” concludes Rose.
