The overwhelming majority of advisers believe software integration is crucial.
A survey by FE fundinfo found that 90% of advisers believe that integrations between software providers are important to their financial planning process. Despite this, data from FE CashCalc showed that only 28% of advisers currently have an active integration between their FE CashCalc account and back office system.
Advisers said efficiency gains and improved data integrity were the key reasons why they decided to integrate the software they use.
For the 28% who did integrate with their back office, nearly 300,000 pensions, investment, incomes, addresses and other information were exported from FE CashCalc to a back office system in 2022.
The data also showed that those who have been integrated with their back office system have, on average, 32 more clients than those who have yet to integrate.
Steve Mitchell, head of adviser proposition at FE fundinfo, said: “Integrations have long been a hot topic of discussion and more integrated technology has typically topped the wish list of many financial adviser surveys in recent years.
“So although the data is surprising, it’s equally important for us to highlight that the number of financial advisers who are integrated is a record high.”
Mitchell has called on the advice sector to work together to promote the value of integrations but noted that setting up the integrations can be a barrier for some advice firms without expertise.
He added: “We will continue to enhance the support we provide because if we can help and support those who are not yet integrated to start integrating their software, there is a huge opportunity for the profession to provide a more efficient and effective service.”
[Main image: kieran-wood-UOk1ghQ7juY-unsplash]
