Evidencing the benefits of technology
Reviewing our customers’ company data alongside the eAdviser Index allows us to assess the extent to which firms maximising their use of technology also demonstrate stronger business metrics. We wanted to know whether the Champions run more successful advice firms than the Explorers – and the evidence since we launched the Index has answered that question conclusively.
Per adviser, the Champions have demonstrated higher ongoing revenue, greater total revenue, more clients and larger assets under advice (AuA). The latest statistics again bear this out.
The data shows the impact that effective engagement can have on a firm’s financial position and performance. Our analysis revealed that Champions generate 44% more revenue per adviser than Explorers, as well as 59% more ongoing revenue than those in the lowest adoption group. Champions also have 28% more clients per adviser and 48% more AuA per adviser than Explorers.
What’s more, the Index highlights that tech adoption continues to be on the rise across the advice profession. After reporting a 57% surge in tech-savvy Champions between 2019 and 2020, the latest data shows that this trajectory is continuing. Our latest Index reveals that between 2020 and 2021, tech Champions increased by 79%. The Embracers also grew by 7%, as advice firms become more sophisticated in their use of technology.
With more firms moving up cohorts, the number of firms within the Adopters category fell by 14%, while the Explorers saw a 3% decrease.
We knew already that the pandemic had forced firms across the industry to reassess their technology capabilities, with the adoption of different systems and tools rising accordingly. Covid-19 and the associated restrictions that took effect in 2020 and 2021 brought fundamental changes in the way that advice is delivered.