Advisers still spending significant periods of time on manual tasks

Nearly a third of financial advisers believe they could serve 20 or more additional clients if their systems were fully integrated, FE Fundinfo research has found.

The research found that many advisers are spending significant periods of time on manual tasks and administrative processes.

This is “diverting valuable time away from revenue-driving activities such as building client relationships and delivering tailored guidance”, FE Fundinfo said.

FE Fundinfo also found that 61% of advisers spend more than 20% of client meetings collecting or updating data, equating to around 12 minutes lost in a typical hour-long meeting.

Meanwhile, some 29% spend more than 40% of their client meeting time on this admin, while just 5% have eliminated it entirely.

Despite the awareness of its benefits, with 91% of advisers viewing technology as a business opportunity, many are facing significant barriers to adopting a unified tech stack.

A lack of integration between different solutions (60%), the cost of implementation (54%), and difficulties finding the right software to fit existing tech stacks (52%) were all cited.

Some 67% of advisers said more than 10% of their firm’s costs are due to inefficient technology and manual processes.

Those who adopt integrated systems and artificial intelligence to tackle manual processes can unlock huge cost savings while refocusing on higher-value work, FE Fundinfo said.

FE Fundinfo head of UK IFA products Jodie Gallagher said: “Advisers recognise the enormous potential of technology to drive growth, enhance client experiences and increase operational efficiency. Yet many are still battling outdated, fragmented systems that strain valuable time and capacity. The challenge now is for firms to look beyond short-term fixes and start building comprehensive technological strategies.

“Whether it’s integrating tools like cashflow planning and portfolio analysis to provide more joined-up, tailored advice, or streamlining data flows to cut down on manual admin, financial advisers who adapt their digital capabilities will be far better placed to meet the needs of clients and navigate an evolving market with confidence.”