1 in 3 dealer group ‘demystify’ tech for advisers

Netwealth’s 2022 AdviceTech Report found that almost one in three dealer groups are helping advice firms demystify tech (28.1 per cent with a further 37.5 per cent wanting this) or working with them to understand their tech needs (31.3 per cent with a further 41.9 per cent wanting this).

Almost half (46.3 per cent) of advisers surveyed said that they wanted help achieving a more integrated system of technologies.

“For firms that aren’t on their own AFSL, their licensee or dealer group plays an important role in selecting and supporting technologies for their business. This is clear when considering the many barriers these businesses have in selecting and implementing technologies”, said Matt Heine, joint managing director of Netwealth.

In terms of selecting vendors, almost half of licensed firms (42.5 per cent) are getting help from the dealer group with due diligence and security assessments of IT providers and in selecting the most suitable IT partner (35.6 per cent). A further one-third of businesses indicated that their licensee or dealer group is not currently helping in these areas, but they would like them to (29.4 per cent and 36.3 per cent).

Over four in 10 (41.9 per cent) dealer groups provide ongoing training and support and almost one in three (31.9 per cent) help resolve tech issues.

Customer experience

The AdviceTech report noted that if an advice firm’s technology doesn’t give clients what they need or expect, or creates an unexpected barrier, they may just choose to use someone else whose technology works for them better.

“The digital experience we provide our clients needs to be intuitive, designed to meet their habits, easy to access, and it must work,” the report said.

Advice firms recognise this, with one in five firms (22.1 per cent) definitely increasing investment in client engagement technologies from the previous financial year, and another two in five (39.9 per cent) probably spending more.

The 2022 Netwealth AdviceTech Research Report surveyed 303 advice firms. Fieldwork took place from 13 April to 19 May 2022.