OMAHA, Neb.--(BUSINESS WIRE)--Orion, the premier provider of transformative wealthtech solutions for fiduciary advisors, unveiled the results of its second annual Wealthtech Survey during CEO Natalie Wolfsen’s opening keynote of the firm’s flagship Ascent conference in San Diego. The survey, administered to an expansive set of advisors, seeks to provide financial professionals with actionable insights that will help them understand the strategic benefits of technology and outsourcing to support their growth efforts.
Ascent 2024 celebrates the “Unstoppable” spirit of financial advisors, a sentiment corroborated by Orion’s survey findings. Ninety percent of advisors are expecting continued strong growth – on average 16% – in 2024. Over the prior three years, advisors surveyed grew their firm’s assets under management (AUM) by an average of 26%.
“Investors are demanding more of their advisors and advisors are poised to deliver. In the next three years, two-thirds of advisors (64%) say they will deliver a more personalized, customized client experience,” said Natalie Wolfsen, CEO of Orion. “At Ascent, we've rallied over 1,500 advisors and industry visionaries to ignite collaboration and exchange groundbreaking ideas and strategies, all with the goal of revolutionizing the client experience and transforming the delivery of financial advice. Advisors will walk away from this year’s event with new ways to optimize their back office, combat the challenges associated with market volatility, increase and protect their clients' wealth, and ultimately, grow their businesses.”
Technology is key to powering continued growth with over half (52%) of respondents planning to invest more in client-facing technology this year. At the same time, just one in ten advisors say their firm has all the technology solutions they need, indicating a widespread recognition of the necessity for further investment in this area. Consistent with last year’s survey results, overall technology expenditure is expected to rise by 8% this year, highlighting a continued commitment to leveraging technology as a driver of future growth.
Integrated Technology, Outsourcing Can Give Busy Advisors Time Back
Advisors cite disconnected solutions as their primary pain point related to technology, revealing a critical need for improved tech stack integration. On average, advisors say half of their technology is integrated. This shows a clear opportunity for advisors to decrease time spent on operational/administrative tasks – which take up one-third (28%) of advisors’ days – by improving and integrating their tech stack.
Another characteristic of “unstoppable” advisors is the strategic use of outsourcing to focus on their core competencies. Survey respondents expect their outsourcing spend to increase an average of 4% this year, with the below percentages offering a snapshot of how many advisors are already fully or partially outsourcing these tasks:
- Compliance and regulatory reporting (46%)
- Portfolio accounting (46%)
- Investment management (38%)
- Trade execution (36%)
- Client reporting and communication (34%)
Additionally, one-fifth of advisors express increased interest in outsourcing portfolio management due to market volatility. On average, advisors are spending nearly 20% of their day on investment and trading tasks.
Eyeing AI for Enhanced Client Experiences
As the industry anticipates disruptive trends, advisors are increasingly directing their attention toward the potential impact of artificial intelligence (AI) and machine learning. A notable 38% of advisors surveyed anticipate that these technologies will be the most disruptive influence on the wealth management industry in the coming three years (versus 23% in 2023 survey). This shift in perspective is poised to shape investment and adoption strategies, as evidenced by the fact that 30% of advisors are now planning to harness AI and machine learning within the same timeframe (versus 18% in 2023 survey). This cautious optimism is rooted in a desire to fulfill client demands for more sophisticated technology and to make their own operations more efficient. Advisors are thoughtfully exploring how these advancements can help shift their focus from time-consuming administrative tasks to more value-added activities like enhancing client relationships and identifying growth opportunities.
Advisors Can Now Access Orion Compare; Get Preview of CRM of the Future
Orion officially launched its Compare tool, now available to Orion Advantage users. Developed with a complete end-to-end experience in mind, it integrates data in real-time across the Orion Advantage Stack, including Portfolio Accounting, Orion Risk Intelligence, Orion Trading, Redtail CRM, Orion Communities Model Marketplace and more. This app streamlines complex processes, providing advisors with a seamless dashboard to effectively construct, analyze and communicate the simulated impact of portfolio changes to clients. Tasks that once consumed hours and required multiple team members can now be accomplished with just a few clicks, resulting in presentation and trade ready portfolio scenarios within minutes.
Further, the tool's Smart Summary feature incorporates behavioral finance and AI to significantly enhance communication between advisors and clients. Orion’s integrated BeFi20 assessment provides insights into clients' financial behaviors and attitudes, enabling advisors to tailor their advice. The Smart Summary uses information gathered in the BeFi20 assessment to translate complex financial data into clear, understandable narratives that are likely to resonate with the investor’s persona, helping clients grasp the implications of their investment choices.
As part of its latest updates, Orion is also transforming Redtail CRM, its client relationship management system, into a next-generation CRM of the future. This transformation will be rolled out in phases, with users set to experience a series of system enhancements in the months to come. Most immediately, this CRM overhaul will embrace modern design principles, offering dashboards that provide both broad and granular views of client accounts. Additionally, users can expect improved navigation and search functionalities to streamline their experience.
"Our commitment to advisors is deeply embedded in every innovation we bring forward at Orion,” added Wolfsen. “We have a profound understanding of the challenges advisors face, including the complexities of integrating disparate tech stacks and the increasing demand for personalized client experiences and investment management. By incorporating advisor feedback, embedding critical integrations and workflows, and implementing a visual refresh, Orion is making strong progress in unifying our various acquisitions and unlocking further value for advisors. We’re dedicated to empowering the ‘unstoppable’ advisor, providing them with the client-centric technology and open architecture investment options they need to excel.”
More detailed results from Orion’s Wealthtech Survey are available here.
Survey Methodology
A 10-minute online survey of financial advisors was conducted in January 2024 by Logica Research. Sample size = 542.
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About Orion
Orion is a premier provider of the tech-enabled fiduciary process that transforms the advisor-client relationship by enabling financial advisors to Prospect, Plan, Invest, and Achieve within a single, connected, technology-driven experience. Combined, our brand entities, Orion Advisor Tech, Orion Portfolio Solutions, Brinker Capital Investments, Redtail Technology, and Orion OCIO, create a complete offering that empowers firms to attract new clients seamlessly, connect goals more meaningfully to investment strategies and outcomes, and ultimately track progress toward each investor’s unique definition of financial success. Orion services $4.1 trillion in assets under administration and $65.9 billion of wealth management platform assets (as of December 31, 2023) and supports over six million technology accounts and thousands of independent advisory firms. Today, 12 out of the Top 15 Barron’s RIA firms1 rely on Orion’s technology to power their businesses and win for investors. Learn more at Orion.com.
1 Source: 2023 Top 100 RIA Firms, Barron's, 2023.
Access to the Orion Compare tool (“Orion Compare”) is made available solely to customers of Orion Advisor Technology, LLC (“Orion”). Orion Compare does not make recommendations or determine the suitability of any security or strategy nor does past performance of a security or strategy guarantee future results. With respect to the data and information made available within Orion Compare, Orion does not guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with respect to the results to be obtained from its use.
