Financial advisors have not adopted most Web 2.0 technologies, but they say their websites are little more than brochure-ware and acknowledge that they could save money by posting portfolio performance reports online and enabling clients to input their own financial and demographic data.
These were the results of an online survey of a small group of advisors this past week. While the survey results are based on a small sample of just 37 advisors, I’ve conducted many similar surveys of advisors like this before and have always found that, once such 35 advisors respond, overall survey findings remain about the same whether 35, 350, or 1,350 advisors respond.
It’s clear from the results that few advisors are blogging, hosting webinars, or using XML data feeds to integrate their applications. It’s also clear that advisors are intrigued by Web 2.0 technology that can increase efficiency.
A large majority of advisors (73%), say they can save money by allowing their clients to input financial planning questionnaires and basic demographic data. However, with 82% of the respondents saying they have no easy way to track tasks they assign to clients, such as filling in forms or getting tax information from their accountants, it seems likely that adoption of Web 2.0 systems will accelerate in coming months as advisory firms struggle to become more efficient to counter the revenue shortfall they’re experiencing due to the stock market meltdown.
To learn more about how advisory firms can increase efficiency and deepen client relationships by adopting Web 2.0 technology, please view a presentation I gave yesterday at a webinar hosted by ByAllAccounts.
Advisor Products has developed an interface with ByAllAccounts, a leading account aggregation firm, that allows advisors to provide clients with a single view of all their assets. ByAllAccounts enables advisors to discover their clients’ held-away assets that are self-directed or managed by other advisors.
Posted: 2009-03-26 01:29:00