That is the focus of this research, which follows on from a series of interviews we conducted with 10 C-level participants across the US wealth management industry.

We explored the importance of technology, which aspects of the advisor’s role were deemed most reliant on, and deserving of, technological support, and how this dynamic may evolve going forward.

The executives had a range of opinions on these aspects and more. Some described technology as absolutely critical, while others saw it as one factor amongst many, and placed emphasis on variables such as culture.

Overall, respondents think advisors are looking for the means to do their job the best way possible, using technology as a support for efficiency as well as providing the best possible experience to clients. While they selected no single aspect of technology as more important than another, if the advisor was hindered from doing a good job, they would either not come on board in the first place or start looking elsewhere. However, it is important to note that technology would not alone be an initiator of change. In particular, a firm’s culture was singled out as something crucial to support advisors.

When it came to how technology is handled internally, participants discussed the value of taking a collaborative and firm-wide approach that included taking on board advisors’ opinions before a new technology was introduced. This approach, it was thought, would be better as advisors would have a good understanding of a new technology and its benefits before any implementation.

Adoption of technology was also a point of discussion, with various methods, such as peer working groups, established to encourage it. Advisors were not remunerated or incentivized to use technology in any of the firms that took part in this research. However, it was thought that advisors with better performance levels would likely be using technology more than those who were not performing as well.

Technology was also deemed a factor well worth communicating in the recruitment process, with firms giving live demonstrations to prospective advisors and encouraging existing ones to share their experiences within the broader community.

Finally, technology’s role in providing an attractive and relevant service proposition to the next generation and thus being important for advisors to have, was discussed. Participants were well aware of this, although the extent to which firms had taken action varied.

In summary, firms vary in their thinking about the role of technology in retention and recruitment. Interestingly, a majority are either actively seeking to improve their technology stack or are well aware of the need to do so. Only a small minority thought it of no importance.

We’d like to thank our sponsor Bill and our partner, Pirker Partners, for their support in this whitepaper in the WealthTech Insight Series. You can access the full report, read it online or download, here.