Technology has become an essential part of the financial services industry. As a result, the financial technology investment firms must make is significant. It stands to reason that understanding the return on investment (ROI) for your firm’s technology is a major part of the purchasing decision process.

We recently conducted a survey to determine the return-on-investment results eMoney users are experiencing. Polling a sample of 701 users, we learned about the outcomes financial professionals want to achieve through their investment and how quickly they are achieving it.¹ Consider these measures as you conduct your own research into the best planning platform for your business.

The Importance of the Right Financial Technology Investment

The financial professionals we polled understand that choosing and investing in the technology that is best for their particular business is an important starting point to realizing positive overall ROI. We found that 92 percent of our respondents said that having the right planning technology helps increase ROI.

More than half of our survey respondents indicated they want their financial planning platform to help them:

• Increase the level of service offered to clients
• Confidently show and tell clients they can reach their goals
• Save time creating financial plans
• Create a two-way conversation to engage clients in creating a financial plan
• Communicate potential financial risks clients could face in the future

Let’s dig into these expectations and see how having the right financial planning technology results in their achievement.

Financial Planning Technology Offers Business Growth and a Better Client Experience

Our analysis of the survey results revealed that the desired goals for financial planning tech could be categorized as impacting two overarching areas—service to clients and business growth.

Overall, 94 percent of the advisors saw an improvement in client satisfaction and engagement, with 81 percent also seeing an improvement in client retention.

On the growth side, the percentage who saw improvement in business efficiency was also high at 92 percent. Other areas that indicated a strong impact to business growth included:

• 80 percent saw improvements to assets under management
• 80 percent saw improvements in their ability to attract new clients
• 77 percent saw improvements in revenue
• 71 percent saw improvement in client referrals

So, although improvements to client relationships are a top indicator of where advisors are seeing the most value from financial planning software, our survey shows that gains in business growth are also a realistic expectation.

Strong Value Propositions Revealed

As the data from the survey was examined, two underlying themes emerged that created strong value propositions. These were the ability to plan interactively with clients and the benefits of a strong client portal and aggregation.

Adding Further Value through Interactive Planning

A major theme that emerged from our research was the significant value advisors gain from having access to interactive planning capabilities. We asked survey participants how using financial planning software has helped them increase client satisfaction and the top response at 69 percent was interactive planning capabilities. Advisors leveraging interactive planning saw a faster return on investment as well, with 76 percent realizing an immediate return.

These advisors also generated considerably more referrals, with 79 percent getting over 20 referrals compared to only 29 percent overall. Interactive planning enabled advisors to have deeper two-way conversations, sell more products, differentiate their services, and drive better business outcomes.

A Client Portal and Aggregation Deliver Business Growth

Sixty-six percent of the advisors responding to our survey said that a goal for their planning technology was to save time creating financial plans. This goal was more closely tied to increases in business efficiency than any other.

More and more people are seeking financial planning expertise, creating opportunities for growth and making the ability to streamline the planning process critical. In our survey, 73 percent saw an immediate return on their investment and reported that efficiency improved in all aspects of creating financial plans including:

• Ability to quickly create scenarios and do “what if” planning (72%)
• More quickly develop and update financial plans (70%)
• Streamline the financial planning process (68%)
• More quickly generate client reports (57%)
• Easier access to held-away assets (51%)
• More easily and quickly get accurate client account aggregation (49%)
• More quickly gather client data (48%)
• Streamline data entry (43%)

Essential to the results of this business efficiency, as well as improved client satisfaction, is the use of a client portal with account aggregation. Client portals and aggregation provide the means for advisors to save time onboarding new clients, engage clients’ broader family networks, and see held-away assets—all key components of business growth. The use of a client portal was also the means to quickly achieve client satisfaction for advisors whose objective is to confidently tell and show their clients they would reach their goals.

The Value Advisors Gain from Financial Planning Technology

Ultimately, the data from our study of eMoney users showed that ROI is quickly realized, with 83 percent of respondents seeing ROI within the first year. The study reinforced the value of having great service from a financial planning platform, as well as the value of interactive planning in both client engagement and business growth. Client portals and account aggregation services were also revealed as essential tools in curating an excellent client experience.

All in all, we believe this is evidence that financial planning technology is helping financial professionals strengthen their relationships with clients while building their businesses for the future.

Learn more about the role financial technology can play in your firm’s success by watching our webinar, Financial Planning for Strategic Growth: Balancing the 4 Pillars.

Source:

1 eMoney, ROI of eMoney Study, December 2023, n=701

DISCLAIMER: The eMoney Advisor Blog is meant as an educational and informative resource for financial professionals and individuals alike. It is not meant to be, and should not be taken as financial, legal, tax or other professional advice. Those seeking professional advice may do so by consulting with a professional advisor. eMoney Advisor will not be liable for any actions you may take based on the content of this blog.

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