Advice firms choosing to embrace technology are significantly outperforming their peers, new research from Intelliflo has discovered.
Intelliflo’s eAdviser Index, designed to understand the relationship between technology adoption and overall business performance, found that advice firms fully harnessing technology outperform their peers across various metrics, including client numbers, assets under advice, revenue and recurring revenue.
It is based on analysis of billions of interactions by users of Intelliflo Office, which Intelliflo reviewed to score and segment where each advice firm is on its specific adoption journey. This involved examining how firms use the functionality within Intelliflo Office across six areas: valuations, income, document designer; personal finance portal, activity management and data quality.
The Index segmented firms into four cohorts: explorers, adopters, embracers and champions.
Intelliflo’s analysis revealed that advice firms in the Champions category, the highest technology adopters, generated per adviser, 119% more revenue, 105% more ongoing revenue, 86% more assets under advice and serviced 39% more clients than firms in the adopters category.
The data also showed a sharp dip in the number of ‘explorers’, the lowest technology adopters, as more firms progressed up the technology adoption ladder.
Nick Eatock, CEO of Intelliflo, said: “This year’s eAdviser Index makes it clear: adviser firms that fully harness technology are leaping ahead. Champions are not only seeing a 119% increase in recurring revenue per adviser, but they are also serving nearly 40% more clients. Technology is proving essential for growth and efficiency, and we’re pleased to support this progress.”
Richard Wake, chief customer officer at Intelliflo, added: “2024 has been a breakthrough year, with technology adoption accelerating faster than ever. Advice firms are seeing for themselves the business benefits of adopting technology, and we have been able to connect with them and provide the support they need to embed technology and unlock its full value.”
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