intelliflo has released today its latest eAdviser Index, providing an extensive analysis of technology adoption within the UK financial advice industry.
The eAdviser Index showcases the superior performance of advice firms that have fully embedded technology into the advice process across critical metrics such as client numbers, assets under advice, and revenue throughout 2022. The analysis further reveals that firms harnessing technology achieved even greater business performance gains compared to the previous year.
Launched in 2018, the eAdviser Index, developed by intelliflo, delves into the ways advice firms leverage the available functionality within “intelliflo office,” the company’s cloud-based practice management software, which currently supports 46%* of the UK adviser market. Serving as a cornerstone for understanding the relationship between technology adoption and overall business performance, the eAdviser Index analyses nearly four billion interactions within intelliflo office over the past year, categorising advice firms into four distinct groups based on their technology adoption scores: “Explorers1” (the lowest adopters), “Adopters2”, “Embracers3” and “Champions4“(the highest adopters).
According to the analysis, in 2022, advice firms in the top technology adoption group, Champions4, have, on average, generated 54% more revenue per adviser compared to the lowest adoption group, Explorers1. This represents a significant increase from the 44% difference observed in 2021, illustrating the growing impact of technology on financial advisory business performance.
Moreover, the Champions4 group has demonstrated remarkable growth, generating 76% more ongoing revenue per adviser than Explorers1. This showcases a notable improvement from the already high 59% margin noted in the previous year. Additionally, the gap in assets under advice per adviser has expanded from 48% in 2021 to 64% in 2022.
Furthermore, in 2022, tech Champions4 displayed a 39% higher number of clients per adviser compared to Explorers1, marking a significant increase from the 28% difference observed in 2021. This highlights the substantial benefits of technology adoption in enabling advisers to service more clients and at a lower cost.
Figure 1: Chart showing how much more revenue, recurring revenue, clients and assets under advice (AuA) per adviser the Champions 4 group achieved on average, compared to Explorer1 firms.
| Year | % increase in revenue per adviser, compared to Explorers1 | % increase in recurring revenue per adviser, compared to Explorers1 | % increase in clients per adviser, compared to Explorers1 | % increase in AuA per adviser, compared to Explorers1 |
| 2022 | + 54% | + 76% | + 39% | + 64% |
| 2021 | + 44% | + 59% | + 28% | + 48% |
“Tech-embracing advice firms continue to outperform their peers, displaying wider gaps in revenue, assets under advice, and clients per adviser,” said Nick Eatock, CEO of intelliflo. “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.”
intelliflo’s customer teams help advisers deploy elements of the technology more effectively through learn-as-you-go experiences and digital courses, which enables advice firms to improve in their ability to service more clients efficiently and deliver exceptional client experiences.
“We are delighted with the effectiveness of intelliflo office for our operations, as we have dedicated the necessary time to fully grasp and incorporate it into our own processes and systems. By investing in the right technology stack, and effectively embedding it into our advisory workflows, we have experienced heightened efficiency, cost reduction, improved client engagement, and expanded access to advice,” said Steve Oakley, Head of Change and Development at Astute Private Wealth.
