A recent Broadridge survey of North America’s financial advisors had some relatively dramatic findings.
In the context of fundamental changes to client relationships catalyzed by the environment resulting from the pandemic, 77% of financial advisors said they lost business as a result of not having the appropriate technology tools to interact with clients. Those that lost business reported an average drop of a substantial 22% of their book. A full 87% of advisors reported that they thought recent changes in investor communications and engagement would be sustained over time.
The lack of suitable technologies compromises advisors’ relationships with their clients. But it also threatens the viability of wealth firms who risk losing their advisors to firms that already employ next-generation wealth platforms. While it was impossible to foresee the onset and impact of COVID-19, advisor communications technology was evolving relatively rapidly before the onset of social distancing, as new electronic communications technologies were refined and increasingly adopted by forward looking investment firms. The lesson of the current situation may be that accelerating the adoption of new technologies to stay ahead of the technological curve is a strategy that pays off in the end.