A new study finds that advisors who are taking advantage of key technologies are noticeably more successful than their peers in several key measures — and are happier with their jobs.
According to the Fidelity study, using technology, eAdvisors were able to service 55% more clients than their typical peers, and through servicing more clients, the clients eAdvisors worked with had 14% more assets under management (AUM). According to the report, nearly three-quarters of these so-called “eAdvisors” believed technology has helped them grow their books of business.
Technology Best Practices
Only 3 out of 10 advisors in the study were identified as eAdvisors, suggesting that there are many "tech indifferent" advisors today who may not be taking advantage of technology to strategically grow their business. Based on the study, Fidelity identified six categories of technology best practices that eAdvisors were utilizing to help grow their businesses – and six steps to help advisors move from being “tech indifferent” to tech savvy.
1. Reaching out to clients and prospects electronically by communicating with clients on social media, automating email alerts, promoting practices on social media and providing updates via text message. This allows them to engage with new clients online where they are searching for an advisor, stay in contact with clients and reach a broader audience. According to the report, 64% of eAdvisors are using social media to communicate with clients, compared with 12% of typical advisors.
2. Creating a virtual work environment by using on-the-move tools like tablets to view financial information, transacting on mobile devices and using video or online conferencing. According to the report, it allows them to engage with clients at a convenient time and location and respond quickly to market changes. The report notes that 75% of eAdvisors are using tablets to view portfolios and reports, versus 23% of typical advisors.
3. Introducing capabilities to enhance operational efficiencies by adopting portfolio management and administrative tools to automate workflows; employing a platform to collaborate with clients; and utilizing risk and compliance tools, eSignature, and rebalancing software. This allows them to streamline daily activities, speed up turnaround times and reduce errors, according to the report. Little wonder that 80% of eAdvisors automate workflows and administrative tasks versus 24% of typical advisors.
4. Providing clients with a dynamic view of their financial situation by using data aggregation and visualization capabilities to produce interactive and/or visual reports, providing a complete view of clients’ assets and liabilities. The report notes that this allows them to provide their clients a “visually compelling, comprehensive financial picture.” More than 8 out of 10 (81%) eAdvisors are providing this holistic view of client assets, a service that the report says fewer than half (47%) of typical advisors are offering today.
5. Keeping their team up to date on investor interactions, utilizing CRM software to store client data and track client and prospect interactions, and providing cloud-based storage. This allows these eAdvisors to access up-to-date records of client and prospect interactions, have easy access to essential details and provide document storage for clients. The report notes that 80% of eAdvisors are using CRM software to track client interactions, while only half (49%) of typical advisors do that today.
6. Improving the client experience with online access to information, through sending eNewsletters, eDelivery of statements and reports, and providing online access to statements and reports. This allows eAdvisors to reduce workload, reduce their reliance on paper and enhance their client experience. The report notes that nearly all (95%) eAdvisors deliver statements and reports electronically. In contrast, just 72% of “typical” advisors do.
