Advisors Who Use More Tech Tend to Outperform: Cerulli

Financial advisors who are considered heavy users of technology tend to outperform other practices in terms of client acquisition and assets under management growth rates, according to recent research from Cerulli Associates.

Some 30% of heavy technology users are those with higher-growth practices over the most recent three-year period, compared with just 9% of light users. In 2023, the most active technology users offered 10.2 services, versus 7.2 services offered by light users.

Heavy technology users average materially better performance than light users across practice productivity metrics, according to Cerulli data. These improved metrics include higher numbers of clients served per staff member across the practice — the number of clients per producing advisor, per professional staffer and per senior advisor.

Sixty-five percent of advisors attribute most operational efficiency improvement to e-signature, 44% to customer relationship management and 29% to video conferencing. Cerulli noted that these three technologies also are among the most frequently used within advisor practices, ranking first, second and fourth, respectively.