#USA #New York #Broadridge #financial advisors #FSI

Introduction

In a recent survey conducted by Broadridge Financial Solutions, Inc. and the Financial Services Institute (FSI), significant insights have emerged regarding the aspirations and challenges faced by financial advisors in today’s rapidly evolving landscape. With an increasing demand for technology adoption and product education, the study highlights the necessity for advisors to enhance their toolkit to not only meet client expectations but to also seize growth opportunities.

The Growing Demand for Technology and Education

The data reveals a stark reality: 68% of advisors lack confidence in their firm's technology adequately supporting their growth ambitions. Among these, 30% perceive access to the appropriate technology as a crucial factor in deciding on their broker-dealer relationships. This dissatisfaction highlights an important trend—financial advisors are showing an unwavering desire for superior technological solutions that can enhance client acquisition and engagement.

Moreover, a staggering 76% of advisors believe that improved technology tools would streamline client onboarding, suggesting a clear need for firms to invest in user-friendly and efficient capabilities. Chris Perry, President of Broadridge, emphasizes, "As client expectations rise, advisors require more interconnected technology and stronger educational resources to support their growth."

Priorities for Broker-Dealers

When asked about potential areas for investment, advisors pointed to key functionalities that could greatly enhance their operational efficiency. Prioritizing investments in areas such as:

• - Account opening and client onboarding (22%)
• - Paperwork automation (15%)
• - Client-facing tools (15%)
• - Financial planning tools (10%)

These priorities align directly with enhancing day-to-day functions and underscore the necessity of upgrading technological frameworks to improve the overall client experience.

Importance of Training

Beyond technology, the study reveals a glaring need for comprehensive training. An overwhelming 82% of respondents believe enhanced training and awareness of technological tools are vital for driving business growth. This sentiment foreshadows a greater emphasis on education and enablement within the financial services sector, indicating that advisors are not only seeking advanced technology but also the knowledge to effectively leverage these tools.

The Role of AI in Client Engagement

Interestingly, the adoption of generative AI is gaining traction among advisors. The survey found that 51% are utilizing AI in at least one aspect of their business, with younger advisors (67% under 45) leading the charge. The benefits of AI are becoming increasingly apparent, particularly in areas like client engagement (29%) and marketing (21%). Dale Brown, President and CEO of FSI, dismisses the myths regarding generational resistance to technological adoption, stating, "Client expectations are evolving alongside the digital landscape, proving that there is a real opportunity for advisors to enhance their service offerings."

Specialty Investments on the Rise

Despite the burgeoning demand for alternative investment options, advisors are concurrently grappling with their ability to advise on these products. The study noted that while 53% of advisors recognize increasing client interest in cryptocurrency, many still lack confidence in addressing such inquiries. A substantial proportion (48%) calls for more education on asset classes like cryptocurrency, compounded by growing interest in alternative investments (expressed by 31% of advisors).

To tackle these challenges, technology emerges as a pivotal enabler. About 38% of advisors reflect that technological advancements have improved tracking and performance analysis for alternatives, emphasizing technology’s crucial role in fostering growth.

Conclusion

The findings from the Broadridge and FSI study serve as a clarion call for the financial services industry to adapt and evolve in response to shifting client demands. The combination of advanced technology investment and enhanced training opportunities for advisors can pave the way for sustained growth and the development of lasting relationships with a new generation of clients. As the sector navigates these needs, Broadridge remains committed to empowering advisors to leverage technology for better performance and a superior client experience.

In summary, the synergy of education, technology, and innovation will be essential for advisors aiming to thrive in the current and future landscape of financial services.