Financial planning firms are increasingly embracing modern technology to support day-to-day workflows and secure their long-term future, according to the latest Financial Planning Growth Index published by the Saltus Partnership Programme and L.E.K. Consulting.
The report, based on responses from 200 senior leaders at financial planning firms, finds that four in ten (42%) firms are investing in technology to manage growth and the regulatory burden profitably. This represents an increase from the 35% recorded in November 2024 and suggests that firms see technology as an increasingly important part of their business strategy. Elsewhere, 22% of firms are devoting less time to sector events, while 20% are increasing their use of paraplanners.
Looking ahead, the data also show that a quarter (25%) of firms cited improving operational efficiency as a top three priority for their business over the next 1-3 years, up from 22% in the previous survey. Alongside this, almost one in ten (8%) cited digital transformation as a key priority. Together, this shows that firms recognise both the need to enhance the delivery of advice and the growing power of modern technology.
Firms also have a clear view on where best to channel their investment. When asked what specific technology investments they have planned for the next 1-3 years, over a third (34%) cited upgrading existing systems, while almost a quarter (24%) plan to implement new financial planning tools. Elsewhere, 8% plan to invest in their data analytics capabilities, with 7% looking to introduce their own app or portal for clients.
Nick Heath, Head of Relationship Management at the Saltus Partnership Programme, said: “Our research uncovers a clear direction of travel when it comes to investment in technology. We have seen first-hand how modern technology can enhance the delivery of financial advice, to the benefit of firms and clients alike, and it is encouraging to see that so many firms are not only planning to increase their investment, but also have a clear strategy for doing so.
This is a testament to the resilience of the sector, which continues to demonstrate its ability to innovate and provide the best possible service to clients.”
Bronswe Cheung, Partner at L.E.K. Consulting, said: “As the speed at which technology is advancing shows no sign of slowing, firms of all sizes cannot afford to be left behind. We are witnessing an important shift, however, where firms are treating investment in technology more strategically. By taking a long-term view, assessing the full suite of options available and setting clear guardrails, firms will be best placed to navigate the transition and unlock tangible value.”
To read the Financial Planning Growth Index from the Saltus Partnership Programme and L.E.K. Consulting in full click here.
