CHICAGO,
Oct. 13, 2016
- Advisors utilizing advanced technology integration allocate
significantly more time to client management compared to their
peers with basic or no integration.
- The median RIA with advanced technology integration has 78%
more assets, and the median IBD advisor has twice the assets of
peers with basic or no technology integration.
- In addition, the median RIA can service 57% more clients, and
the median IBD advisor 44% more clients, thanks to the operational
efficiencies created by advanced technology integration.
- Bank/trust advisors have the greatest efficiency improvement by
shifting around 20% of their time from operations to client
investment management tasks, resulting in a significant revenue
increase of 76% over their peers with basic or no integration.
Envestnet, Inc. (NYSE: ENV) announced today the publication of a
white paper, "Technology Integration Turbocharges Advisor
Productivity: Making Time for Clients," based on new primary
research from Aite Group.
To download the full paper please visit: http://bit.ly/2dXJiAc
The research showed that having advanced technology integration
allows advisors to reallocate time from operations and investment
research tasks toward client activities and investment management.
Depending on the firm's priorities, dedicating more time to clients
can either result in better service provided to existing clients or
serving a greater number of clients.
"Our unified wealth management
platform empowers advisors to increase productivity and
dedicate more time to client management while also ensuring
they remain in compliance with changing regulations and fiduciary
standards. Delivering data aggregation and analytics
integrated with powerful financial planning capability is a
strategic imperative for us," said Jud
Bergman, Chairman and CEO of Envestnet. "The
research that we partnered with Aite Group to publish
validates that advisors with advanced technology
integration generate around 50% more financial plans.
This translates into deeper knowledge of client needs,
more clients served, and higher practice revenue. These
are essential elements of a successful advisory practice."
Aite Group collected data for the white paper through an online
survey of 330 primary financial advisors from independent
registered investment advisors (RIAs), independent broker-dealers
(IBDs), and private banks and bank trusts in April 2016. For the purpose of this study,
technology environments with advanced integration were defined as
those having either automatic data sharing between business
applications or functional integration across business applications
(or both), and being rated by the financial advisor as having an
integration level of 65% or higher.
The highlights for each wealth management sector include:
- Independent RIAs
- Independent RIAs that benefit from advanced technology
integration produce about 50% more financial plans and investment
proposals, and spend 19% more of their time on client investment
management than their counterparts.
- This results in a greater number of clients served (57% more),
books of business that are 78% larger than those of their peers,
and 46% higher practice revenue.
- Nearly half of all independent RIA practices with a high level
of tech integration are million-dollar-revenue practices, compared
to 24% of those with basic or no tech integration.
- Independent Broker-Dealers
- Advisors at IBDs with advanced tech integration spend 28% more
of their time on client management compared to those with basic or
no tech integration.
- This enables them to serve 44% more clients, double their
client assets, and increase practice revenue by 73%.
- Bank & Bank Trust Advisors
- Bank and bank trust advisors with advanced technology
integration are able to shift about 20% of their time from
operations to client management.
- This enables them to generate 76% more revenue than their peers
with basic or no integration.
"Our analysis shows that deep integration among technology
solutions makes it possible for independent financial advisors, and
bank and bank trust advisors, to run their practices more
efficiently, spend more time serving and engaging with clients, and
grow their client base," said Alois
Pirker, Research Director of Aite Group's Wealth Management
Practice. "Hiring more staff members isn't enough to meet
today's greater client and regulatory expectations. For advisors,
the much more far-reaching, long-term option is to evaluate their
current technology setup and replace inefficient legacy systems
that take time away from client-facing tasks."
About Envestnet
Envestnet, Inc. (NYSE: ENV) is a leading provider of unified
wealth management technology and services to financial enterprises
and advisors. Our solutions unify and fortify the wealth management
process, delivering unparalleled flexibility, accuracy,
performance, and value. Envestnet enables the transformation
of wealth management into a transparent, independent, objective,
and fiduciary standard of care, and empowers enterprises and
advisors to more fully understand their clients and deliver better
outcomes.
Envestnet's Advisor Suite enables financial advisors to better
manage client outcomes and strengthen their practices.
Institutional-quality research and advanced portfolio solutions are
provided through Envestnet | PMC, our Portfolio Management
Consultants group. Envestnet | Yodlee is a leading data
aggregation and data analytics platform powering dynamic,
personalized financial apps and services for millions of consumers.
Envestnet | Tamarac provides leading rebalancing, reporting,
and practice management software for advisors.
More than 2,000 companies, including 15 of the 20 largest U.S.
banks, 38 of the 50 largest wealth management and brokerage firms,
over 500 of the largest Registered Investment Advisers, and
hundreds of Internet services companies, leverage Envestnet
technology and services. Envestnet solutions enhance knowledge of
the client, accelerate client on-boarding, improve client digital
experiences, and help drive better outcomes for enterprises,
advisors, and their clients.
For more information on Envestnet, please visit
www.envestnet.com and follow @ENVintel
(https://twitter.com/envintel).
About Aite Group
Aite Group is a global research and advisory firm delivering
comprehensive, actionable advice on business, technology, and
regulatory issues and their impact on the financial services
industry. With expertise in banking, payments, insurance, wealth
management, and the capital markets, we guide financial
institutions, technology providers, and consulting firms worldwide.
We partner with our clients, revealing their blind spots and
delivering insights to make their businesses smarter and stronger.
Visit us on the web (http://aitegroup.com) and connect with us on
Twitter (https://twitter.com/AiteGroup) and LinkedIn
(https://www.linkedin.com/company/aite-group).
Media
Contact:
Dana Taormina
JConnelly
(973) 850-7305
dtaormina@jconnelly.com
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SOURCE Envestnet, Inc.