On today’s broadcast, it’s survey time. Find out about this year’s winners and losers in the annual Financial Planning Magazine technology survey.
So get ready, FPPad Bits and Bytes begins now.
Ok, this week’s coverage is all about the 2015 Financial Planning Magazine technology survey, analyzed every year by tech expert Joel Bruckenstein. This year’s survey consisted of just 600 responses, of which roughly 200 were from firms that identify themselves as independent RIAs.
Now I have to admit, this sample size is a lot lower then the peak back in 2011 when the survey collected over 3200 responses, but Financial Planning Magazine changed its survey methodology to prevent ballot stuffing, and insists that the current data is still statistically significant. So, now that we have that out of the way, you can draw your own conclusions from this year’s survey results.
Technology Spending
First up: technology spending. Survey says: Over 90% of advisors spent the same or more on technology this year. But honestly, I don’t see how spending on technology guarantees your firm will be any better in the long run, it just means you spend lots of money on technology.
I care whether you’re gaining efficiency and scalability from the technology you do purchase, which leads us to the next item. CRM software.
Top CRM Software
So what’s the top CRM in use? Survey says! None.
Seriously, none?!? Yeah. Among independent RIAs, 22.9% say they don’t use a formal CRM. Oh wait, I know what CRM they use: Cranium Relationship Management, because It’s All Right Here. Ugh.
But for those of you who DO use a CRM, top survey responses include Salesforce, Junxure, and Redtail, with Wealthbox doing a respectable job closing the gap with the top three.
Top Financial Planning Software
So what about financial planning software: Survey says! MoneyGuidePro takes the top spot, with eMoney in the runner up position for the sixth straight year. Eight other providers battle it out for the remaining solutions, with Advizr being one to watch with its quality showing after just one year in the marketplace.
Top Portfolio Management Software
And moving on, the next category is portfolio management software, with the top provider being, oh that’s right, survey says! PortfolioCenter.
Morningstar, Albridge, Envestnet and Orion round out the top five, as their numbers are fairly consistent with the tech surveys over the last few years. But, I’m fairly sure Envestnet and Orion are a lot closer to one another in marketshare than this survey shows, with Envestnet probably commanding a slight lead, so remember what I said earlier about statistical significance and sample size.
Top Online Advice Solution
Alright, we’re in the home stretch now, as the top online advice solution is: Survey says: Wealth Access? Huh.
So now I’m confused, because Wealth Access provides portfolio reporting, monitoring and aggregation services, but not online advice. So that leaves a Schwab Institutional Intelligent Portfolios™ as the true top online advice solution, with nine other providers battling it out for at least some meaningful traction among advisors. I can tell there’s a lot more work to be done here.
Top Client Portal
And finally, I’m wrapping up with the top client portal, so, survey says! Broker-dealer or custodian provided. Ugh. That’s not a portal, that’s online account access! Anyone with an account has that! Seriously.
At least with eMoney, which claimed third place, clients can securely upload documents, see all their financial assets using account aggregation, and more. If all you offer is read-only account access to client, you are not leveraging the potential of a real client portal.
I don’t know about you, but I’m a little depressed after digesting this year’s tech survey. There is a lot of work left to be done.
But here’s the silver lining: this survey covers the technology that some advisors are using up until today, but it’s not indicative of the cutting-edge solutions that have the potential to grow your business in the near future.
For that, you’re going to have to watch next week’s episode on my picks for the Best Technology of 2015.
Watch FPPad Bits and Bytes for December 4, 2015
