Page 3 - Investment Advisor March 2022

03.22

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How Advisors Are Using Tech Now: Survey

A new study from Broadridge Facebook are the most widely
Financial Solutions and the Financial used social media platforms by
Services Institute points out growth advisors for both business and
opportunities for financial advisors personal use, providing other
and the heightened role technol- channels where advisors can
ogy tools play in enabling them to reach their clients virtually.
provide a better service experience, Fifty-eight percent of advisors
foster deeper relationships and described their practice as a “solo”
reach underserved communities and practice. Of those advisors who
the next generation of investors. describe their practice as a “team”
Ninety-two percent of advisors practice, the average team size is four.
in the survey reported satisfaction Broadridge and the FSI said this
with their technology capabilities, demonstrates that advisors are
but they still see opportunities for increasingly reliant on technology
improved technology to better meet tools to service clients and fill the
their practice goals. Eighty-three personnel gap.
percent of study participants agreed that financial advisors and employees of The study also found that 60% of
better technology tools would greatly financial advisory firms. advisors are equally focused on financial
improve new client acquisition, especially planning and investment management,
as a third expressed interest in prospect- Crypto and ESG yet those younger than 45 cited client-
ing outside of their current geographic As the market remains in a low interest- facing tools as the top area for technol-
location and will rely on improved tech- rate environment and investors look ogy improvement as they increasingly
nology tools to reach prospects virtually. for creative ways to find returns, 64% focus on holistic financial planning.
“Advisors are taking advantage of this of advisors report that they have seen
wave of digital transformation to provide increased interest in cryptocurrency Expanding Family Connections
investment ideas, offer financial literacy from clients. Further, a third of advisors Nine in 10 advisors reported that they
tools, discuss ESG trends and connect said clients have shown growing inter- have engaged or plan to engage with
with clients and their families in new est in environmental, social and gover- additional generations of existing clients,
ways,” Christopher Perry, president of nance investments as the asset class such as children or grandchildren. Of the
Broadridge Financial Solutions and a gains popularity. those who do so currently or are planning
board member of FSI, said in a statement. “With the rise of DIY investing and cli- to do so, 79% said they directly raise the
Fifty-one percent of advisors reported ents growing interest in branching out to topic with their clients and 55% offer to
that they still conduct formal client meet- new asset classes, financial literacy is of build the financial literacy of clients’ chil-
ings virtually, either by phone or video the utmost importance and advisors have dren or grandchildren.
conferencing. Thirty-nine percent said a clear role to play,” FSI’s president and While a majority of advisors recognize
they expect to increase their video con- chief executive Dale Brown said in the the importance of building relationships
ferencing usage in the next 12 months. At statement. “There is a significant oppor- with the next generation of investors
the same time, 88% of advisors expect tunity for advisors to educate current through existing clients, many also pri-
to either increase or maintain their cur- and prospective clients and empower oritize engaging their client’s spouse in
financial discussions.
them to make better financial decisions
rent rate of in-person, formal client meet-
Adobe Stock ings in 2022. and technology tools can enable them be 68% of formal client meetings include
Further, advisors said that on average,
informed and connected.”
This survey was fielded in November
According to the study, LinkedIn and
both spouses. —Michael S. Fischer
by 8 Acre Perspective Corp. among 493
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MARCH 2022 INVESTMENT ADVISOR 1