"Firms that score highly are clearly outranking their peers in terms of clients advised, revenue generated, recurring revenue and assets under management."
Intelliflo analysed 3.7 billion customer clicks to identify where a firm is on its tech adoption journey.
Between 2019 and 2020, the number of firms in the highest adoption group (Champions) increased by 57% and the number of firms in the lowest adoption group (Explorers) decreased by 70%, showing that tech adoption is on the rise across the industry.
Intelliflo’s analysis shows that technology adoption is leading to greater business performance as firms in the top technology adoption group, Champions, generate on average 57% more revenue per adviser compared to the lowest adoption group. Not only are the highest adopters generating more revenue, they are generating more ongoing revenue with Champions having double (112%) the recurring revenue of Explorers.
Smaller increases in adoption can have a noticeable effect too. Firms that move up to Embracers can generate up to 22% more revenue per adviser, and those that move up to Adopters can generate up to 18% more.
The data also shows that Champions have 126% more assets under management than Explorers.
Nick Eatock, CEO of Intelliflo, commented: “This year’s eAdviser Index highlights that embracing technology can have a fundamental impact on any business. Firms that score highly are clearly outranking their peers in terms of clients advised, revenue generated, recurring revenue and assets under management. Interestingly, many of our Champions are small advisory firms which shows that anyone can maximise the use of tech, regardless of size. This means that technology can help level the playing field to some degree.
“We still find that some advisers adopt as little as a tenth of the technology they have at their fingertips. So, for us, it’s important that we don’t just provide the technology but that we help advisers make the most of it, leaving them with more time to focus on their clients and their business.”
