There is a significant confidence gap in adviser technology, according to new research from Defaqto.
Based on a survey of 120 advisers, just 7% said they were very confident that their systems produce consistent outputs, with many firms still operating across fragmented systems that require manual intervention, duplication and reconciliation.
Nine in 10 (89%) advisers use three or more systems within their advice process, while more than two thirds (67%) frequently re-enter the same data across multiple platforms. However, 89% believe disconnected systems create hidden costs across efficiency, time and risk.
Daniel Boneham, product director at Defaqto, said: “In practice, advisers are spending more time bridging the gaps between tools than the tools save them. The research shows that the gaps between systems – not the systems themselves – are now a major source of hidden effort, particularly where data doesn’t align and outputs need to be reconciled.”
Defaqto said manual data entry remains a critical pressure point, with industry benchmarks suggesting a 1-4% error rate every time data is rekeyed. While firms have historically focused on adding and integrating tools, the challenge is now increasingly centred on how those tools connect at a data level and whether outputs are consistent, explainable and reliable.
Boneham added: “The real shift is away from tool accumulation and towards data alignment. Advisers need a consistent, shared data foundation that supports the entire advice process. Without that, firms are left reconciling differences rather than relying on their technology with confidence.”
To help firms assess their own position, Defaqto’s report ‘The Hidden Cost of Disconnected Technology’ includes a practical four-question workflow check-in to discover where firms sit on the ‘friction spectrum’ and how disconnected systems may be affecting capacity, consistency and control.
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