Technology integration increasingly important for clients: Netwealth

Netwealth Investments chief executive and managing director Matt Heine has stressed the importance of advice firms maximising their use of technology.

“In an age where finding new and fresh ways of reaching, educating, and interacting with clients is more important than ever, it’s critical that advice firms push forward with digital transformation, not just taking on technology but ensuring that it’s used to maximum effect,” Heine said.

Netwealth’s 2024 AdviceTech report revealed that while the majority of advice firms are using at least 17 pieces of technology, just one in 10 say technology is pervasive in all client engagement interactions.

As clients become increasingly accustomed to digital spaces, Heine suggested that firms should be offering more online tools and digital forms of interaction.

“We know clients are increasingly seeking a seamless digital experience from their advisers and are themselves used to using social media, search engines, mobile apps, and other online tools in their daily life. Advisers can offer them everything from client portals to online educational information,” Heine said.

The report further revealed that less than half (46 per cent) of advice firms said they were more often than not successful at implementing new digital technologies, citing a lack of time (59 per cent), excessive costs (47 per cent), and insufficient resources or skilled people (38 per cent) among the most significant barriers to taking on new technologies.

Innovation and experimentation key among top advice firms

Looking at the top technology adopting firms or AdviceTech Stars as Netwealth called them, the report found these firms tend to commit to staying ahead in terms of innovation (82 per cent), motivate their organisation to pursue innovation (78 per cent), and communicate the importance of innovation to their wider team (81 per cent).

Furthermore, these leading firms are encouraging their staff to experiment, test and learn (72 per cent) and share their feedback on both failed and successful experiments (61 per cent), and foster a culture of sharing new ideas (81 per cent).

Continuing this culture of experimentation, the report found that AdviceTech Stars were 1.5 times more open to risks on new technologies than conservative firms, with 66 per cent, and were 1.6 times more likely to encourage staff to take risks with new ideas.

Heine said that Netwealth wants to encourage more firms to experiment with new technology to help them “improve their practice and increase the value they deliver for clients”.

“By looking at our industry technology adoption leaders, the AdviceTech Stars, we hope advisers can draw some key inspiration for getting started or fully realising a digital transformation journey,” he said.