The number of digitally-enabled adviser firms is growing steadily as firms adopt technologies to differentiate their practices, attract new clients and enhance operational efficiencies, according to a new paper from Pershing LLC: The Emerging Digital Advisor.
The paper looks at how advisers are using technology with clients, how digital tools can positively impact advisor-client relationships and advisers’ views on the impact digital capabilities will have on the industry.
“As digital technologies continue to surface, awareness and adoption among advisors is likely to grow over the next several years,” said Ram Nagappan, chief information officer of Pershing. “By incorporating digital technologies, an advisor can enhance the entire adviser-client relationship at once – helping the practice become more efficient and client-centric.”
The study also found that more than 90 percent of digitally-enabled advisers increased their assets under management, with more than a third of the practices growing by more than 10 percent in the last twelve months. Digital practices also experienced higher growth in revenue over the same time period. Of those surveyed, over 70 percent of digitally-enabled practices increased revenue by 5 percent or more; with 38 percent of practices reporting revenue increases of 10 percent or greater. By comparison, just over 50 percent of traditional advisers reported growth of 5 percent or more.