The past two years have catapulted the need for financial advice and more advisors even faster than expected. Firms anticipate increasing business over the next five years from new clients looking to build savings for future emergencies and increase their retirement savings. According to the U.S. Bureau of Labor Statistics, the need for financial advisors projects to grow 7 percent from 2018 to 2028, faster than the average for all occupations.

This demand creates the need for firms and senior advisors to bring in more advisors to their practice. However, recruiting has become more difficult due to retiring advisors, an aging population, and not enough new talent entering the industry to offset the growing demand for financial advice:

  • The number of financial advisors is sliding year over year, declining 12% since peaking in 2008. 
  • More than one-fifth of advisors plan to retire or leave the business in the next 5 to 10 years.  
  • There are more CFP® professionals over the age of 70 than under the age of 30. 

-Source: CFP Board

In this competitive recruiting environment, technology is critical to either helping or hindering your efforts. The next generation of advisors expects technology that enables them to see more clients, efficiently manages wealth with integrated systems, and reduces their time on administrative tasks. Wasting time on tasks that should automate can be frustrating and turn-off tech-savvy advisors considering joining your firm. Therefore, efficient workflows between systems through PaaS integrations should be at the forefront of your recruiting—and discussed at your first recruiting meeting.

As reported in NAPA’s article, Cerulli: Technology Could Better Assist 40% of Advisor-Managed Assets, Cerulli’s data shows that, on average, heavy technology users manage nearly $239 million per practice, while light users manage $106 million.

“Technology has the power to transform a practice by elevating the client experience and increasing overall productivity,” observes Cerulli research analyst Marina Shtyrkov. “However, many advisors are unable to unlock the full potential of their technology stack because they are plagued by a common set of challenges that impede adoption.” 

According to the research, the top limiting factors include: 

  • Time to learn and implement technology (68%) 
  • Inadequate resource and training from their broker-dealer (B/D) or custodian (52%)
  • Lack of support staff (54%) 
  • Data security risks (50%). 

For firms that have ‘ironed out’ these limiting factors, the results are precise—they manage double the assets. The bottom line is this; technology transforms a practice by increasing advisor productivity, enhancing the client experience, and being one of the most potent tools of attraction when advisors consider joining a firm.

At AdvisorPeak, we believe that the way to serve our industry effectively is by bringing it benefits. Benefits to the firms we serve by buying back time for what they do. That is the value a well-designed tech stack brings to your firm. Let us show you how AdvisorPeak and its partners provide you with the features, benefits, and value to act on today’s advisor-shortage opportunity.