How Advisers are Using Tech to Attract Millennials

Financial advisers are boosting their technology game. With the aim of attracting new, younger clientele, advisers now are recognising the role technology is playing in their pitch to this generation.

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Advisers are investing in means to improve services for consumers who increasingly use on-demand services like Uber and Netflix. Financial planning businesses also rely on technology for more profitable and efficient business practices, and are now using and spending money on additional software.

Recent statistics show that the use of technology and apps globally are on the rise. Technology is the fastest-growing cost at financial advisory firms in the past five years, and costs have increased at 16.6% annually during 2011 to 2015, which outpaces employee compensation costs.

The average technology expenditure has risen to over £75,000 in 2017, from £69,899 in 2015. Approximately half of business technology spending is on software. The focus is now on purchasing software that will complete client experience goals and accelerate internal processes.

The goal is attracting new clients and retaining them, and technology is playing a big role in this. Improving communications prove vital, with chat features between advisers and clients. E-signature and online onboarding support for clients has also been introduced at some firms. For back office systems for IFAs look at companies such as

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Another innovative tool used by advisory firms are robo-advice tools. These devices are intended to bring new clients into their firms, with young investors eager for accessibility and convenience in an increasingly on-demand world.

Core Functions

Software tools are primarily used by advice firms in three core functions: financial planning, portfolio management and client relationship management. Adoption rates are projected to rise between 83% and 94% of businesses by the close of 2017.

Document management and account aggregation software tools are designed to increase efficiency of competitors still using paper. About 72% of advisors are expected to use these tools by the close of 2017.

Viewing accounts remotely has also been adopted, as clients want access at all hours, not just market hours. Mobile platforms are now being introduced, with usage at around 70% of advisers.

Software Essentials

Advisers are likely to be adopting 5.8 software systems, with most likely categories of:

•       Portfolio Rebalancing
•       CRM
•       Document Management
•       Financial Planning
•       Account Aggregation
•       Portfolio Management

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