Over the course of the pandemic, firms were compelled to upscale their technological capabilities as their field force and clients were thrust into a remote-work reality. Digital onboarding, digital marketing, cloud-based data management systems, and virtual communication platforms were adopted en masse. The recent introduction of the client-focused reforms also put regtech and compliance technology solutions in focus.
But as firms pile on tech solutions one after another, they could be planting the seeds for another crisis.
“The lack of integration between core applications is a huge pain point for advisors and is often a result of implementing technology in isolation,” Kenny says. “A siloed technology implementation comes with an abundance of inherent business risks and often lacks a critical long-term vision of the business.”
A snapshot of advisors’ experience in the U.S. could hold up a revealing mirror to the Canadian financial advice industry. In InvestmentNews Research’s 2022 Adviser Technology Study, 56% of respondents said each vendor they use is selected individually; the typical firm uses five different technology vendors, and a third of firms are looking to add more.
But 57% of advisors agreed that the lack of integration between their core applications is the biggest pain point with technology. They were also asked to score their technology systems on a five-point scale, with 5 being the highest, based on how connected they were. On that question, 78% of respondents gave scores between 1 and 3, including 67% who gave a 3 rating that indicates (some systems connected, others not.”
