Transforming Your Business Through Advisor Technologies

by Isabella Fonseca, October 13, 2015
Industry Trends
North America

Abstract

This report offers ideas for banks, private banks, brokerages, RIAs, and custodians wanting to understand market trends and where the industry is investing resources in the next 12 to 18 months. The report also offers suggestions as to how firms can differentiate themselves and increase operational efficiency in the advisor business.

In the report Transforming Your Business Through Advisor Technologies, Celent presents survey results of financial institutions including banks, broker-dealers, RIAs, and insurance firms in the US market to identify which technology solutions best enable efficient advisor practices. 

Main findings of the report include:

  • Firms are investing in different business strategies to improve front office technology and advisor education.
  • Simplicity, ease of navigation, and integration with many solutions via a single portal are the most important features that define a good user experience.
  • Advisors spend most of their time managing existing clients, meeting with clients, and seeking new clients.
  • The most common technology tools used by advisors are CRM systems, followed by proposal and modeling tools, wealth management platforms, and mobile access.
  • Mobile functionality for investors and advisors is supported by most firms, and functionality is targeted to specific customer segments.
  • Technology tools make advisors more relevant to the next generation of investors.
  • Firms are embracing the robo-advisor model as a complement to their existing service model and a way to offer differentiated levels of service and access.
  • Key developments within firms’ digital strategies refer to online, social, and mobile channels.

“Technology is essential to an advisor’s practice to help enhance the service model, improve relationships with clients of all ages, and increase collaboration with clients,” says Isabella Fonseca, a research director with Celent’s Wealth Management practice and author of the report. “Each firm’s unique business model as well as the unique needs of their investors contribute to the pace of adoption.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

3

 

Background, Objectives, Methodology

3

 

Key Research Questions

3

Wealth Management Trends and Developments

4

 

Wealth Management Trends

4

 

Key Themes

5

Technology Investments for Advisors at Firms

10

Making the Difference

14

 

Integration

14

 

End Investor Engagement

15

 

Defining a Good User Experience for the Advisor

17

 

Customer Segmentation

17

Looking Forward

20

 

Future Technology Investments

20

 

The Role of Digital Advice in the Advisor-Client Relationship

21

Leveraging Celent’s Expertise

22

 

Support for Financial Institutions

22

 

Support for Vendors

22

Related Celent Research

23

Sign in to download reports and access personalized information