Overcoming The Digital Divide: Connecting Advisors and Consumers Using Technology as a Partner

Executive Summary

In 2022, there’s no shortage of financial solutions. The same can be said of financial providers. However, despite the robust, practically overwhelming availability of services, financial management as a whole remains fragmented and siloed by legacy architecture. In short, it’s still difficult for many individuals — even wealthy ones with greater access — to effectively and efficiently oversee their finances. Technology paves the way for longevity in the client relationship and long-term viability for today’s growing field of financial institutions.

Key Takeaways

• Even in 2022, the financial services industry still faces steep internally-driven technology hurdles, such as business silos, legacy architecture, and integration challenges.
• Nearly 40% of financial advisors expect to retire in the next decade. Meanwhile, the number of mass affluent and millionaire households isn’t getting any smaller. Firms with a younger cohort of advisors are well-positioned to prosper if they can cater to the hybrid needs of the affluent.
• 50% of high-net-worth and affluent clients think their primary wealth manager should improve their digital capabilities — from personalized offerings and omnichannel access to account consolidation and integrated services.
• More and more financial advisors are leaving their firms to join RIAs. Independence, monetary incentive, and lower technological barriers are the driving forces behind the migration.