A new data-driven index published today by AdviserSoftware.com aims to shed fresh light on how UK advice firms use technology – and how likely they are to continue doing so.
The inaugural Adviser Technology Index (ATI), developed by AdviserSoftware.com – part of consultancy Financial Technology Research Centre (FTRC) – provides detailed insight into the systems advisers use across 19 categories of AdviceTech.
These include core infrastructure such as Practice Management and Cashflow Planning tools, as well as emerging areas such as hybrid advice models, client portals, workflows and suitability reports.
Drawing on the experiences of more than 200 advice firms, the index blends objective data with subjective sentiment. It highlights how systems perform in practice, where frustrations lie, and where firms are most likely to make changes.
SATISFACTION & STICKINESS
The study identifies meaningful differences in adviser satisfaction and system stickiness between leading technology vendors.
In particular, cashflow planning tools appear to be the most vulnerable to change, with 36% of firms considering replacing their current system within the next 12 to 24 months.
By contrast, only 26% of firms are reviewing their Practice Management Systems over the same period – and in some cases, the figures are lower still. Just 17% of Benchmark users and 14% of Salesforce users said they plan to make changes.
Ian McKenna, founder of FTRC and AdviserSoftware.com, said the index is intended to deliver hard evidence on which technology systems are working best – and why.
“Technology is now crucial to how every adviser firm operates,” he said. “No previous research has provided this level of granular analysis of systems side by side based on the views, experiences and priorities of their users.”
He added that the index offers a valuable roadmap for platforms, insurers and asset managers seeking to align their integration priorities with adviser needs, and offers technology providers detailed guidance on areas of improvement.
“The index enables tech providers to understand how their users feel about the systems they work with, identifying key opportunities to do better,” he said.
Each participating software supplier is benchmarked against the wider market, with individual sections highlighting the areas their users want to see improved.
For Practice Management Systems overall, advisers most frequently cited shortcomings in data management and validation, client portals, and third-party integrations.
The index also brings into focus areas of the AdviceTech market that may be saturated. The study found that while 23 different systems are used for Attitude to Risk assessments, five of these account for almost two-thirds of market share – suggesting scope for consolidation.
According to the data, adoption of technology to support client reviews is now widespread. Overall, 60% of advisers use digital tools in this area, but the figure varies significantly depending on the provider.
Among intelliflo users, 64% use tech for client reviews, rising to 68% for Dynamic Planner, 71% for Plannr and Salesforce, 73% for Morningstar, and 83% for Benchmark.
AdviserSoftware.com says it expects the ATI to become a key reference point for advisers and providers alike. McKenna noted that the organisation’s reviews are already being used by many firms as a starting point when reviewing or replacing existing systems.
“Our team is almost entirely composed of people who have worked in advice businesses, so we know the day-to-day challenges advisers face,” he said.
“This is not just a collection of logos on a page – every review is based on deep analysis, practical testing and direct questioning.”
The Adviser Technology Index is now live and available to participating firms and vendors.
