Adviser adoption of new technology has stalled amid growing dissatisfaction with providers, according to the latest study by financial research firm NextWealth.
The Adviser Tech Stack Report, which will be published tomorrow (21 September), found that an increasing number of advisers have delayed adopting new technology for their businesses.
NextWealth identified three reasons why advisers are hesitant to adopt technology.
They include the risk of something going wrong, a compelling lack of alternatives to justify taking risks and many advisers being too busy managing their businesses.
This report will be alarming for many technology providers given the earlier embracing of technology at the height of Covid pandemic.
Then many observers predicted the acceleration of technology adoption in the advice sector.
NextWealth managing director Heather Hopkins said: “After the frenzy of tech change due to the pandemic, our data suggest we are seeing a hiatus, with just 13% of financial advice professionals saying they plan to make specific changes to their tech stack in the next 12 months.
“However, the adviser reviews featured in the report show that satisfaction levels with existing tech are falling almost across the board, and half (49%) say they are open to considering new systems. This could be an indication there is a storm brewing for tech providers in the near future.”
The NextWealth Adviser Tech Stack report delivers in-depth analysis of the technology that underpins the delivery of financial advice.
It is used to size the UK adviser tech market and assess market share of individual providers including benchmarking adviser tech businesses against the competition.
And prioritising integrations and proposition developments and identifying up-coming adviser tech trends
According to NextWealth, two areas that could prove compelling in mobilising advisers to make changes include on-going client interaction and integration with back-office systems.
“We see integration – specifically the lack of it – come up in all our reports so any tech provider that really cracks this is going to be onto a winner,” Hopkins told Money Marketing.
“If they can also open easy-to-use tech channels that allow advisers to have a more dynamic, digitally-enhanced relationship with their clients, they will be pushing on open doors to new business.”
The NextWealth Tech Stack Report also includes an overview of the tech stack currently used by financial advice professionals and ratings for specific platforms, back-office providers, cashflow and scenario modelling firms.
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Re-enrolment is a sizeable task, and requires proper planning. You must ensure that eligible staff who are not already in your auto-enrolment pension scheme are put back into it.
There is one comment at the moment, we would love to hear your opinion too.
Much of this ‘tech’ rides on Microsoft Excel anyway. With some imagination and a working knowledge of Excel, much can be accomplished. Then there are additional, free, sites for all manner of calculations and information. It’s just a matter of effort and application. Much of the ‘tech’ on sale is overpriced, poorly serviced and a long way from being value for money. In today’s environment is not impossible to DIY.
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