Study highlights increases in efficiency and challenges technology provides to financial advisory practices; integration of tools and client data cited among top adviser needs

For Release: July 24, 2008

Denver, Colo. and Lawrenceville, N.J… Investing in key technologies results in improved efficiency and profitability; however, key challenges remain in integrating tools and client data according to a study on financial advisory practices released today by The Financial Planning Association^® (FPA^®). In its first study focused on the benefits and challenges of financial planning technology, the FPA Practitioner Technology Report: Leveraging Technology Solutions captured the views of nearly 300 financial advisers on a broad range of new tools and technology, including financial planning, customer relationship management (CRM), portfolio management software, account aggregation software and report generators.

Key findings include:

• At least 50 percent of planners that use these technology tools report an increase in efficiency, while another 25 percent report an increase in profitability.
  
• Respondents identified the need to generate a high return on investments in technology and integration among their top technology challenges. The leading challenge, cited by 39 percent of the financial advisers participating in the study, was utilizing the capabilities of existing technology, followed by integrating client account information, identified by 34 percent of the survey respondents.
  
• Respondents identified efficiency, client acquisition and regulatory/compliance as the top three business challenges. Software products designed to address these challenges were highly rated for improving efficiency by an average of 65 percent of respondents.
  
• Technologies that generate a high return on investment, that can be easily integrated within their practices and improve efficiency are viewed as the best allocation for technology budgets. A total of 46 percent of the financial advisers surveyed identified financial planning software as their best technology investment, with 43 percent choosing CRM software and 31 percent selecting portfolio management software.

"The FPA Practitioner Technology Report: Leveraging Technology Solutions underscores the role that technology plays in every facet of an advisory practice," said FPA President Mark Johannessen, CFP®. "Developing a clear vision for their firm's operations and the benefits technology investments deliver will yield measurable results. The study shows this is an ongoing process that can produce results that help our members to compete and succeed in a rapidly shifting, and challenging, environment."

"Increasingly, we see that an open architecture data management platform serves as the foundation for overcoming the integration and interoperability challenges identified by more than one-third of FPA's survey respondents," said Greg Pacholski, president and chief executive officer, Albridge. "Clearly, technology investments will continue to be a critical success factor in improving their businesses and strengthening client relationships."

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