Intelliflo has published its latest eAdviser Index, which analyses technology adoption within the UK financial advice industry.
Launched in 2018, the index assesses the ways advice firms make use of the functionality within ‘intelliflo office’, the company’s cloud-based, practice-management software, which currently supports 46% of the UK adviser market.
The index analysed nearly four billion interactions within Intelliflo office over the past year, categorising advice firms into four distinct groups based on their technology-adoption scores: ‘explorers’ (the lowest adopters), ‘adopters’, ‘embracers’ and ‘champions’ (the highest adopters).
According to the analysis, in 2022, advice firms in the champions group on average generated 54% more revenue per adviser, up from 44% in 2021, compared to the lowest adoption group, explorers.
The analysis also found that the champions group generated 76% more ongoing revenue per adviser than explorers, an increase on the 59% margin noted in the previous year.
In 2022, champions had a 39% higher number of clients per adviser compared to explorers, an increase from the 28% difference observed in 2021.
“Tech-embracing advice firms continue to outperform their peers, displaying wider gaps in revenue, assets under advice and clients per adviser,” said Nick Eatock, Intelliflo chief executive said.
“Year after year, the message is crystal clear: technology adoption is the make-or-break factor for firms seeking future success, cost-effective client service and bridging the affordability advice gap. Streamlining processes through technology adoption becomes an essential competitive advantage at a time of rising costs and resource pressures driven by Consumer Duty.”
