Our latest eAdviser Index confirms yet again that advice firms that fully embed technology into the advice process outperform their peers. In fact, these tech-embracing advice firms achieved even greater business performance gains in 2022 compared to the previous year.
This year’s Index saw the highest technology adopters, our Champions, generating per adviser 54% more revenue and 76% more ongoing revenue, and managing 64% higher assets under advice and 39% more clients than the lowest adopters, our Explorers. This is a significant increase on last year’s figures, when per adviser Champions generated 44% more revenue and 59% more ongoing revenue and had 48% more assets under advice and 28% more clients than Explorers.
The benefits of embracing technology
At intelliflo, we’ve long believed in the power of technology to transform the success of financial advice firms. We launched the eAdviser Index in 2018 to examine in detail the interactions within intelliflo office, our cloud-based practice management software which currently supports 46%[i] of the UK adviser market. We wanted to understand how the critical business metrics, such as client numbers, assets under advice, and revenue, of advice firms that harness technology compare with those of firms that don’t.
Five years on, the Index continues to prove that embedding technology into the advice process is increasingly important to a firm’s success. It provides clear evidence of the positive relationship between technology adoption and overall business performance, highlighting the growing performance gap between the most tech-savvy firms and the least. With Consumer Duty shining a spotlight on value, using technology to streamline processes and deliver a high-quality cost-effective service that supports better customer outcomes, leaving the adviser more time to focus on the client, is becoming an essential competitive advantage.
Many of our clients are already reaping the benefits of properly embedding technology into their advice journey.