“Investors are looking for more advisors, and advisors are ready to deliver,” said Orion CEO Natalie Wolfsen.
According to , 52% of fiduciary advisors said they plan to increase investments in client-facing technology in 2024. Investigation result Wealth tech solutions provider Orion Inc. released on Thursday.
“Investors want more advisors, and advisors are ready to make that happen,” says Orion CEO. Natalie Wolfsen He said this in remarks at the company's recent Ascent 2024 conference. “Over the next three years, two-thirds of advisors say they will provide a more personalized and tailored client experience.”
Logica Research conducted the study in January among 542 advisors recruited using Orion's internal database, the database of the company's customer relationship management system, Redtail CRM, and an independent third-party sample. did.
90% of survey participants (average 16%) said they expected strong growth to continue this year. Orion noted that over the past three years, advisors surveyed increased their firm's assets under management by an average of 26%.
Advisors believe technology is key to driving continued growth, but only 9% of respondents say their companies have all the technology solutions they need. Orion said this shows there is widespread recognition of the need for further investment in this area.
Consistent with Orion's 2023 findings, overall technology spending is expected to increase by 8% this year, highlighting continued efforts to leverage technology as a driver of future growth.
Reduce time on low-impact tasks
This study revealed a serious need for improved technology stack integration. His 25% of advisors say their main pain points related to technology are disconnected solutions, and 18% far outweigh the cost.
On average, advisors say half of their technology is integrated. Orion said technology stack improvements and integration will allow advisors to spend less time on operational and administrative tasks, which make up 28% of his workday.
Research shows that advisors are using outsourcing to focus on their core competencies. Survey respondents said they expect outsourcing spending to increase by an average of 4% this year.
Below is a snapshot of the number of advisors who are already fully or partially outsourcing various tasks.
- Compliance and regulatory reporting: 46%
- Portfolio accounting: 46%
- Investment management: 38%
- Trade execution: 36%
- Client reporting and communication: 34%
Additionally, one-fifth of advisors indicated increased interest in outsourcing portfolio management due to market volatility. On average, they spend 19% of their day on investing and trading tasks.
Focus on AI
As the industry predicts disruptive trends, advisors are increasingly focused on the potential impact of artificial intelligence and machine learning. His 38% of respondents expect these technologies to have the most disruptive impact on the wealth management industry over the next three years, an increase of 15 points from the 2023 survey.
This shift in perspective could shape investment and adoption strategies, as 30% of advisors in our survey plan to leverage AI and machine learning within three years, compared to 18% in last year's survey. There is a gender.
Orion said this cautious optimism is rooted in its desire to meet customer demands for more advanced technology and make its own operations more efficient.
