Press release: intelliflo’s eAdviser Index proves the transformative power of technology
Tech-embracing advice firms generate 54% more revenue, according to intelliflo’s eAdviser Index
Advice firms that harnessed technology to its full potential outperformed their low adoption peers in revenue (54%), ongoing revenue (76%), assets under advice (64%), and number of clients per adviser (39%)
Tech-embracing firms achieved even greater business performance gains compared to the previous year
23 May 2023: intelliflo has released its highly anticipated eAdviser Index, providing an extensive analysis of technology adoption within the UK financial advice industry. The eAdviser Index showcases the superior performance of advice firms that have fully embedded technology into the advice process across critical metrics such as client numbers, assets under advice, and revenue throughout 2022. The analysis further reveals that firms harnessing technology achieved even greater business performance gains compared to the previous year.
Launched in 2018, the eAdviser Index, developed by intelliflo, delves into the ways advice firms leverage the available functionality within “intelliflo office,” the company’s cloud-based practice management software, which currently supports 46%* of the UK adviser market. Serving as a cornerstone for understanding the relationship between technology adoption and overall business performance, the eAdviser Index analyses nearly four billion interactions within intelliflo office over the past year, categorising advice firms into four distinct groups based on their technology adoption scores: “Explorers1” (the lowest adopters), “Adopters2”, “Embracers3” and “Champions4“(the highest adopters).
The findings of the eAdviser Index demonstrate that firms which have adopted the technology to its fullest potential in the past year have achieved exceptional results. On average, Champions4 have generated a remarkable 54% more revenue per adviser compared to the lowest adoption group, Explorers1. This represents a significant increase from the 44% difference observed in 2021, illustrating the growing impact of technology on financial advisory business performance.
Moreover, the Champions4 group has demonstrated remarkable growth, generating an impressive 76% more ongoing revenue per adviser than Explorers1. This showcases a notable improvement from the already high 59% margin noted in the previous year. Additionally, the gap in assets under advice per adviser has expanded from 48% in 2021 to a noteworthy 64% in 2022. These results underline the positive correlation between technology adoption and revenue growth.
Furthermore, in 2022, tech Champions4 displayed a 39% higher number of clients per adviser compared to Explorers1, marking a significant increase from the 28% difference observed in 2021. This highlights the substantial benefits of technology adoption in enabling advisers to service more clients and at a lower cost.
intelliflo’s customer teams help advisers deploy elements of the technology more effectively through learn-as-you-go experiences and cutting-edge digital courses, which enables advice firms to improve in their ability to service more clients efficiently and deliver exceptional client experiences.
Notes to editors
*According to a recent report by Platforum – December 2022, “UK Financial Advisers: Planning Technology and Systems”-.
intelliflo widens access to financial advice through leading technology which powers the financial advisory experience. We use open software architectures combined with unmatched industry experience to simplify a complex digital landscape to help advisors compete and grow. Our solutions support over 30,000 financial advisors worldwide, representing over three million end-investors, with over $1 trillion advised across our platforms.
The eAdviser Index scores are calculated by analysing interactions by intelliflo office users to derive a per-firm analysis of exactly what and how they use the features and capabilities available to them via intelliflo office. intelliflo’s customer success team has built adoption models across six key areas of intelliflo office: activity management, valuations, income, Document Designer, Personal Finance Portal and data quality. These enable the team to identify where a firm is on its specific adoption journey and then how effectively it is realising the benefits. These models give each firm a score out of 100 in each of the five areas: 0 means that adoption has not yet started and 100 indicates the technology is fully adopted and is being used effectively to a very high level. These scores are then combined to produce one overall score.
Explorers1 (score 0 – 274)
Firms in this group are typically achieving reasonable scores regarding income processing functionality and have an automated electronic valuation functionality. They are yet to maximise the capabilities these functions offer and have not fully begun with the further efficiency driving capabilities they have access to.
Adopters2 (score 275 – 399)
This group of firms, in the 25-50% range, has a good adoption of technology and is typically strong in the core areas that an advice business requires to function, e.g., valuations and income processing. However, these firms are yet to fully leverage other efficiency-driving benefits that intelliflo office can provide.
Embracers3 (score 400 – 524)
This group of firms has very strong adoption of technology and is typically very strong in most areas. These firms have achieved an eAdviser score in the 50-75% quartile of total scores. Many of these firms have established a technology vision, have delivered much of it and are well on their way to achieving Champion status.
Champions4 (score 525 – 700)
This is the top group of firms who have achieved an eAdviser score in the top 25% of total scores. To get this they must be using all parts of the system and must be using a number of the areas very well to the extent of achieving maximum points. These firms have set out a technology visio