Advice firms fully harnessing technology outperform their peers across critical growth and efficiency metrics such as client numbers, assets under advice, revenue and recurring revenue, according to new research from intelliflo.
Its eAdviser Index is based on analysis of nearly four billion interactions by users of intelliflo office. intelliflo reviewed this data to score and segment where each advice firm is on its specific adoption journey by examining how it uses the functionality within intelliflo office across six key areas: valuations, income, document designer, personal finance portal, activity management, and data quality. Firms were segmented into four cohorts based on their eAdviser scores: Explorers, Adopters, Embracers and Champions.
intelliflo’s analysis revealed that advice firms in the Champions category, the highest technology adopters, have outperformed their peers in record-breaking numbers. Over the past year, Champions generated per adviser 119% more revenue, 105% more ongoing revenue, 86% more assets under advice, and serviced 39% more clients than firms in the Adopters category.
The data also highlights an important shift in the industry: the number of 'Explorers' (the lowest technology adopters) has dramatically decreased, as more firms progressed up the technology adoption ladder.
Nick Eatock, CEO of intelliflo, commented: "This year’s eAdviser Index makes it clear: adviser firms that fully harness technology are leaping ahead. Champions are not only seeing a 119% increase in recurring revenue per adviser, but they are also serving nearly 40% more clients. Technology is proving essential for growth and efficiency, and we’re pleased to support this progress.”
Richard Wake, chief customer officer at intelliflo, added: “2024 has been a breakthrough year, with technology adoption accelerating faster than ever. Advice firms are seeing for themselves the business benefits of adopting technology, and we have been able to connect with them and provide the support they need to embed technology and unlock its full value.”
