Banks risk wealth advisor exits without tech upgrades: Cerulli

Just 8% of wealth advisors in the Americas are not yet using wealth tools.

Banks seeking to scale their wealth management businesses should invest in technology to reduce advisor attrition, according to a study by Cerulli Associates.

About 4 in 5 (80%) of bank and trust advisors consider technology either somewhat (51%) or very (29%) important in evaluating their current firm versus another firm in the industry, according to the “Cerulli Edge— The Americas Asset and Wealth Management” report.

Nearly all advisors have integrated financial planning tools in their work, with just 8% of advisors in the study not yet using the tools.

“Tools such as advanced CRMs and financial planning tools can be key to driving efficiencies for advisors, allowing them to spend less time on administrative tasks and more time with clients—ultimately improving the experience and boosting long-term retention for both advisors and clients,” said Matt Zampariolo, research analyst, Cerulli.

Tools include e-signature, digital advisor-client interfacing tools, and financial planning tools.

Retail bank advisors anticipate a huge increase in artificial intelligence (AI) use over the next two years, with just 23% planning to not use AI in their practice in 2027, Cerulli found.