Advice firms that embrace technology outperform their peers on revenue, assets under advice and number of clients, a new report has found.
Intellifo’s eAdviser Index shows that in 2022, advice firms in the top technology adoption group have, on average, generated 54% more revenue per adviser compared to the lowest adoption group, up from 44% since 2021.
The Index, launched in 2018, categorises advice firms into four distinct groups based on their technology adoption scores: Explorers (lowest adopters), Adopters, Embracers and Champions (highest adopters).
According to the analysis, the Champions group also generated 76% more ongoing revenue per adviser than the Explorer group. This is a notable jump from the 59% margin reported in the previous year. In addition, the gap in assets under advice per adviser has also increased from 48% in 2021 to 64% in 2022.
Furthermore, Champions had a 39% higher number of clients per adviser compared to Explorers in 2022, up from 28% a year earlier.
Nick Eatock, CEO of Intelliflo, said: “Tech-embracing advice firms continue to outperform their peers, displaying wider gaps in revenue, assets under advice, and clients per adviser. Year after year, the message is crystal clear: technology adoption is the make-or-break factor for firms seeking future success, cost-effective client service, and bridging the affordability advice gap.
“Streamlining processes through technology adoption becomes an essential competitive advantage at a time of rising costs and resource pressures driven by Consumer Duty.”
