In today’s dynamic financial landscape, technology has transformed from a mere convenience to a pivotal factor in the prosperity and expansion of advisory firms. The capacity to embrace and harness technology doesn’t just enhance operational efficiency; it’s also a driving force behind revenue generation.
Recent data from Intelliflo underscores the tangible advantages of technology adoption, revealing that advisory firms at the forefront of tech adoption generate a remarkable 54% more revenue per adviser.
Let’s delve into these findings and understand why technology plays a transformative role in the world of advisory firms.
Intelliflo’s eAdviser Index, which draws from data collected by their Intelliflo Office practice management software, spotlights the link between technology adoption and financial success. This index segments advisers into four categories based on their tech adoption levels: explorers, adopters, embracers, and champions. The latest findings make it evident that champions, who wholeheartedly embrace technology, have managed to generate a staggering 54% more revenue per adviser compared to the lowest adopters.
The increase in revenue for tech-embracing advisory firms isn’t confined to the per-adviser metric alone. These firms have also generated an impressive 76% more ongoing revenue per adviser compared to the explorers, who are the lowest adopters of technology. Furthermore, there’s a remarkable 64% difference in assets under advice per adviser. These figures underscore the substantial impact of technology adoption on the financial performance of advisory firms.
While the surge in revenue is undoubtedly noteworthy, the benefits of technology adoption extend far beyond financial rewards. Tech-embracing firms display substantial advantages in crucial areas like assets under advice, clients per adviser, and operational efficiency. By integrating technology into their operations, these firms streamline their processes, enhance client service, and bridge the affordability advice gap. These collective improvements contribute to the overall success and sustainability of the business.
According to Nick Eatock, Intelliflo’s CEO, the successful adoption of technology within advisory firms is often steered by a technology mindset at the leadership level. Firms that prioritise technology and assign dedicated individuals to oversee its implementation and optimisation are better poised to tap into its transformative potential. The ongoing digital transformation, driven by factors like the COVID-19 pandemic, has also created an expectation among clients for digital services, reinforcing the imperative for advisory firms to embrace technology.
In an era where technology is fundamentally reshaping the financial landscape, advisory firms need comprehensive solutions to optimise their operations, unearth growth opportunities, and remain competitive. This is where VENDOR iQ, a leading vendor management platform for the investment industry, takes the stage. VENDOR iQ equips advisory firms with the tools to streamline their processes, optimise vendor relationships, and unlock their full potential.
With VENDOR iQ’s vendor management platform, advisory firms can leverage powerful tools to effectively manage their supply chain, boost operational efficiency, and achieve substantial cost savings. By centralising vendor information, monitoring compliance, and generating customisable reports, advisory firms can demonstrate sound governance, meet regulatory requirements, and drive operational excellence.
The revelations from Intelliflo’s eAdviser Index are a clear testament to the fact that embracing technology is no longer an option but an absolute necessity for advisory firms looking to secure sustained growth and success. The substantial revenue growth, coupled with the improvement in operational efficiency, client service, and regulatory compliance, makes technology adoption an indispensable facet of any advisory firm’s strategy.
Advisory firms that are eager to harness the benefits of technology can join forces with VENDOR iQ to unlock their full potential. With VENDOR iQ’s vendor management platform, advisory firms can harness the power of technology to optimise their operations, drive revenue growth, and deliver exceptional client service. Embrace technology today and position your firm for a future brimming with success.