Is better tech the key to higher revenue?

By Staff | March 21, 2019 | Last updated on March 21, 2019
1 min read
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If you’re frustrated with your productivity level as an advisor, you don’t necessarily require better technology.

While a tech upgrade enables advisors to spend less time per client on various tasks, it also results in advisors spending the same total time on clients because they ultimately serve a larger number of clients more deeply—a phenonenon highlighted by U.S. advisor Michael Kitces in a recent blog post.

For example, financial planning software tends to allow advisors to do more for each client rather than simply create plans faster.

The real limitation on your productivity and the maximum number of clients you can serve is a function of “what any one human being can maintain in total relationships,” Kitces said. Based on research, that number is about 100-150 clients, assuming three meetings per year each.

Instead of making advisors more productive, tech will likely continue to bring down the cost of advice, Kitces said.

While that might sound like good news for investors, it may not be if the industry loses its best advisors as a result.

Said Kitces: “Is the future really one where financial advisors leverage technology to serve exponentially more clients, or will financial advisors simply continue to evolve ever-deeper (coaching-style?) relationships with their existing clients, adding more value (at lower cost) to each client and creating an even more severe talent shortage of financial advisors?”

For full details, including a description of how advisors spend their time, read Kitces’ blog post. staff


The staff of have been covering news for financial advisors since 1998.