New research from Owen James, Fintel’s premium event and insight division, has revealed that advice and wealth management firms are targeting average growth of 17% over the next three years, despite growing concerns that technology challenges and low productivity are limiting their ability to achieve it.
Conducted in advance of Owen James’s upcoming Festival of Finance, the research captures insight from 1,500 senior executives across the UK’s adviser and wealth management sectors.
It shows that, whilst organic growth remains the industry’s preferred route to expansion, many firms continue to rely heavily on traditional referral-based business development strategies, with relatively little change in client acquisition approaches over the past two decades.
The findings suggest a growing disconnect between ambition and capability. Although artificial intelligence, data analytics, and digital transformation are widely viewed as critical to the future of financial advice, technology is also frequently cited as one of the biggest barriers to growth.
Owen James Pulse data indicates that 70% of technology projects in the industry fail, with poor planning, employee resistance, and unrealistic vendor promises identified as the most common causes.
Productivity emerged as a particular concern – named as the industry’s number one challenge for the fourth consecutive year, despite significant investment in digital tools.
Owen James’s data shows firms scored themselves just 6.2 out of 10 on productivity, a 15% decline on the previous year, with legacy systems, disjointed processes, and difficulties implementing change all identified as obstacles.
Most strikingly, advisers report spending only 34% of their working day in direct client-facing activity, with the remainder absorbed by administration, compliance, and internal processes.
At the same time, firms reported they were preparing for significant shifts in client demographics and expectations. Respondents highlighted the intergenerational transfer of wealth, the growing influence of female wealth holders, and the retirement revolution as trends that will reshape the advice market over the coming decade, increasing pressure on firms to evolve how they attract, engage, and retain clients.
“The data paints a fascinating picture. Growth remains the industry’s number one priority, but many firms are trying to achieve tomorrow’s ambitions using yesterday’s operating models. The good news is that demand for advice remains strong.
The challenge is ensuring firms have the technology, talent, and productivity needed to capitalise on the opportunities ahead. As client expectations evolve and firms adapt to major demographic shifts, those that successfully modernise their businesses will be best placed to achieve their growth ambitions.”
James Goad, Managing Director of Owen James
The findings will form part of the discussion at the Festival of Finance, taking place in Birmingham on the 29th of September, where more than 500 senior advisers, wealth managers, and industry leaders will come together to explore the opportunities, innovations, and strategies shaping the future of advice and wealth management.
Find out more about the Festival of Finance, here.
