With a big intergenerational wealth transfer process under way, and a battle to win and retain clients after the upheavals of recent years, advisors need to build a client pipeline. They think using better technology tools can help achieve that.

A US survey of 493 financial advisors and employees of advisory firms found that a large majority (83 per cent) think there’s more potential for better technology tools to help them acquire more clients. The insights come at a time when digital technology take-up is being accelerated by the pandemic and the hunt for more business.

Some 32 per cent of advisors are interested in looking for clients beyond their current geographic location and will rely on improved technology tools to reach prospects virtually. The findings came from Broadridge Financial Solutions and the Financial Services Institute. 

An overwhelming majority (92 per cent) of advisors said they were satisfied with their technology capabilities – a result that might give pause to tech firms promoting new wares.

“Advisors are taking advantage of this wave of digital transformation to provide investment ideas, offer financial literacy tools, discuss ESG trends and connect with clients and their families in new ways,” Chris Perry, president of Broadridge Financial Solutions and a board member of FSI, said.

Video conferencing – which has expanded rapidly during COVID lockdowns – “is alive and well and not expected to go offline anytime soon,” the report’s authors said. Some 51 per cent of advisors report that they are still conducting formal client meetings virtually – either via phone or video conferencing. Advisors expect to increase their video conferencing usage in the next 12 months (39 per cent, versus 21 per cent currently using video conferencing). At the same time, 88 per cent of advisors expect to either increase or maintain their current rate of in-person, formal client meetings in 2022.

The report also found that LinkedIn (77 per cent) and Facebook (67 per cent) are the most widely used social media platforms by advisors for both business and personal use, providing other channels where advisors can reach their clients virtually.

Over half (58 per cent) of advisors describe their practice as a “solo” practice, and of the advisors who describe their practice as a “team” practice (42 per cent), the average team size is four.

The survey was conducted in November last year.