Advisors Plan to Hike Spending on Client-Facing Tech: Survey

Fifty-two percent of fiduciary advisors said they plan to invest more in client-facing technology in 2024, according to survey results released Thursday by Orion, a wealthtech solutions provider. 

“Investors are demanding more of their advisors and advisors are poised to deliver,” Orion CEO Natalie Wolfsen said in remarks during the firm’s recent Ascent 2024 conference. “In the next three years, two-thirds of advisors say they will deliver a more personalized, customized client experience.” 

Logica Research conducted the survey in January among 542 advisors who were recruited using Orion’s internal database and that of Redtail CRM, its client relationship management system, as well as an independent third-party sample.

Ninety percent of survey participants said they are expecting continued strong growth this year, on average 16%. Orion noted that over the prior three years, advisors surveyed grew their firm’s assets under management by an average of 26%.

While advisors consider technology key to powering continued growth, just 9% of respondents said their firm has all the technology solutions they need. Orion said this indicates widespread recognition of the necessity for further investment in this area. 

Consistent with Orion’s 2023 survey results, overall technology expenditure is expected to rise by 8% this year, highlighting a continued commitment to leveraging technology as a driver of future growth.

Reducing Time for Low-Impact Tasks

The survey uncovered a serious need for improved tech stack integration. Twenty-five percent of advisors said that disconnected solutions are their primary pain point related to technology — well ahead of cost, cited by 18%.