Technology has long played an integral role in the life of a financial advisor. However, its impact is far ranging from a staggering array of choices, with more and more WealthTech solutions to utilize for the benefit of their clients and practices. Envestnet’s Market Intelligence Advisor Survey shows that integrated technology workflows – or lack thereof – are the topmost common pain point among advisors (54%)[1]. Technology is integral to their growth and productivity – but it must be integrated end-to-end, they want as many operations and processes integrated as possible into one single, unified ecosystem.
Today, there are over 400 technology solutions on the market. The problem, though, is that advisors would rather not have to rely on many different technology applications and systems that lack integrated technology workflows. It is their biggest pain point and saps both their productivity and growth potential.
Universal need for all-in-one connectivity
Indeed, Envestnet’s own industry research, the 2023-2024 Trends Report titled, “Accelerating Toward the Future of Financial Advice” indicates 61% of advisors would prefer an all-in-one bundled tech platform or software[2]. This desire for integration goes far beyond single sign-on capabilities. Advisors are seeking full tech and data connectivity between their systems and those of their software providers, so they can serve clients better at all stages of their financial lives — and do so consistently, efficiently, and at scale.
At the same time, many clients, as their financial needs become more complex, are expecting their advisors to provide more holistic advice that encompasses additional areas of their financial lives, including tax management. In fact, according to research, 62% of American investors prefer, or already use, a single financial provider[3]. A unified ecosystem with full data connectivity, incorporating personalized portfolio management solutions with features like tax overlay, direct indexing, and transition support, can enable advisors to deliver this value-added service for clients all year long, and not just the months and weeks leading up to Tax Day.
An integrated WealthTech platform or ecosystem creates a unified digital experience for clients, allowing them to log in anytime, and from any location, to obtain a real-time, bird’s-eye view of their overall financial picture. And different applications and tools within the platform, from financial planning and estate planning to credit and loan management and even life insurance, shares data that advisors use to create personalized recommendations in each of these areas.
In addition, advisors can utilize reporting and presentation tools in unified platforms to show clients the potential impact of financial decisions on different areas of their financial lives and wellbeing over the long term.
Becoming a financial coach
Advisors can also assume the role of financial partners and coaches for clients — heroes who can pull up financial plans online and talk clients down from making potentially destructive trades during stressful market downturns.
Value-added services like tax management and behavioral coaching can, from an investment perspective, oftentimes add more than 300 basis points in annual value to client portfolios, according to research from Russell Investments[4]. However, as the scope of advice expands, advisors increasingly need to add value beyond investments for their clients — such as providing advice on estate planning, insurance, healthcare planning, credit, and other areas.
Opportunities for advisors
As advice becomes more holistic and intelligently connected, there are significant opportunities for financial advisors to leverage technology to build their business, become more productive, and ultimately, help multiple generations of clients improve their financial outcomes and well-being.
End-to-end, integrated technology platforms and systems help advisors holistically service clients and their beneficiaries, at every point in their financial journeys, at scale — and lay the groundwork for long-term, multigenerational practice efficiency and growth.
Ideally, unified technology solutions should be able to give advisors the data-driven insights they need to provide clients with actionable next steps on any financial matter in the short or long terms — even something as simple as how best to use the money they save on daily expenses due to better spending habits.
In an increasingly complex financial landscape, an advisor’s need for end-to-end technology solutions has perhaps never been greater. Clients, too, expect a unified digital experience, where personalized recommendations and holistic financial advice are readily accessible.
These types of unified offerings can help advisors to position themselves as trusted financial partners, providing value-added services and guiding clients towards improved financial outcomes across multiple generations. Ultimately, end-to-end technology lays the foundation for long-term practice efficiency and growth, empowering advisors to navigate today's complex financial landscape with confidence and clarity.
[1] Advisor Perspectives ENV Market Intelligence Survey, Spring 2023
[2] Envestnet 2023-2024 Trends Report, “Accelerating Toward the Future of Financial Advice.”
[3] Ernst & Young’s 2021 EY Global Wealth Research Report
[4] Russell Investments, “2021 Value of an Advisor Study”
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