How 500+ Financial Advisors are Using Technology

By Josh Meyer, CFP®, Advisor Tech Tools on Friday, May 13th, 2011

How do you compare to other advisors technology wise? On May 4th, Advisor Tech Tools released technology usage statistics for our 500 registered users in various categories such as: Portfolio Management Software, CRM Systems, Account Aggregation Software, Rebalancing Software, Client Portals, Document Management Systems, and others. Many of the market leaders held the top spots, including; PortfolioCenter, Junxure, ByAllAccounts, Tamarac, Charles Schwab, and MoneyGuidePro. While you can head to our site to see the complete usage statistics, we wanted to share a few of the more interesting pieces of data:

  • Most interesting: Salesforce has quickly jumped to third amongst CRM’s used by our advisors. Salesforce has just recently started pushing into the investment advisor/wealth management industry and we’re surprised by the quick adoption rate.

  • Biggest battle: Outsourcing is gaining a major following amongst small to medium sized advisory firms and the data shows this. There is a four-way tie for the second most used outsourcer in our data (Adhesion Wealth Advisor Solutions, AllBackOffice Consulting, BOSS, and Morningstar Back Office Services). With many advisors striving to be as mobile as possible, we expect to see many other outsourcing firms opening up shop.

  • Most disappointing: 55% of our advisors are not using any account aggregation software. Many whitepapers, webinars, articles and studies have shown managing held-away assets not only can dramatically increase AUM, but that many clients are happy to have these unmanaged assets taken under an advisor’s wing.

  • Interesting Trend: TD Ameritrade was the third most used custodian, but the difference between them and second place Fidelity was only a few percentage points. We feel that with the recent technology push and heavy marketing TD has done lately, Fidelity has a good chance of losing their position as time passes and our user data grows.

We will continue to update the technology usage statistics over time as our user base grows. Technology is playing an ever increasing role in advisory firms and many are gaining competitive advantages by leveraging this technology. As always, just buying a technology solution will never immediately be the answer to some of your operational and efficiency issues. Time and effort must be placed into integrating this technology into your current business practices. 

For a more in-depth presentation of findings, as well as the results of ByAllAccounts' Gadget Tech Survey, click here to watch our on-demand webinar "How Advisors are Using Technology Today".  To watch highlights from the webinar, check out the video below!

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