February 14, 2023 | Stamford, CT — Financial advisors in the U.S. are ramping up their spending on technology with “digital natives” making up an increasing portion of their target customer base. 

More than half of financial advisors in a recent Coalition Greenwich study expect to invest in financial planning technology in the next 12 months and almost as many plan to upgrade their customer relationship management (CRM) platforms. 

“Providing financial advice will always be a ‘people’ business,” says Kevin McPartland, Head of Research at Coalition Greenwich Market Structure & Technology and author of Wealth Management Firms Set Technology Priorities for 2023. “However, with the average advisor now servicing more than 100 clients, it is imperative to have technology-enabled service models that can create much-needed scale.”

Technology Can Extend Advisor Reach, Enhance Client Experience
Data from the new report reveals that nearly three-quarters of financial advisors have either some or complete control over the technology they use and are using that influence to enact an ambitious spending plan to enhance the client experience. Top priorities include financial planning technology and CRM platforms, followed by client reporting and analytics systems. 

“Although market and investment data are not high on advisor’s list of tech investments for this year, data remains a key focus for advisors who are increasingly adopting more sophisticated analytics tools,” says Kevin McPartland.

Wealth Management Firms Set Technology Priorities for 2023 breaks down financial advisors’ technology spending plans for 2023 and identifies the functions and solutions that will attract the most investment dollars. The report also examines advisor usage of turnkey asset management platforms (TAMP) and digital marketing platforms, and names the most popular providers and solutions among U.S. financial advisors in these and other essential functions.