Not only are their numbers rising, but so are their assets under management: tech-savvy advisors now make up 40 percent of advisors overall, and their businesses are booming.
According to the Fidelity 2016 eAdvisor Study, advisors capitalizing on technology solutions have increased by 10 percentage points, from 30 percent of the advisor population in 2014 to 40 percent in 2016. They're also using, on average, twice as many technologies as their peers, and using those technologies more deeply.
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Tech is paying off for them, too, with eAdvisors having 42 percent higher AUM than tech-indifferent advisors, up from 40 percent higher AUM in 2014; 35 percent more AUM per client than tech-indifferent advisors, up from 14 percent in 2014; more high-value clients ($1M+) than tech-indifferent advisors; 24 percent higher compensation than tech-indifferent advisors' and higher satisfaction with their firm and career than tech-indifferent advisors.
They're also future-focused, with 54 percent using client segmentation strategies, compared with 40 percent of tech-indifferents; serving more GenX/GenY clients; and planning to add digital advice within the next two years.
eAdvisors, according to the study, are using four best practices: a strong online presence, with a website, social media activity, website traffic tracking and an online strategy; using technology to simplify and improve client experiences; using technology to develop a holistic view of clients' lives, using data aggregation (87 percent do so, up 18 percent from 2014—just 46 percent of tech-indifferents do so); and communicating/collaborating with clients via technology to maintain and deepen their client relationships.
"Advisors who embrace technology are going to be the ones who scale, grow and ultimately win," Tricia Haskins, vice president, practice management and consulting, Fidelity Clearing & Custody Solutions, says in a statement.
Haskins adds, "While there's still a lag in adoption, it's less about the lack of appetite for technology, and more about not knowing where to begin. We believe advisors who can visualize what their clients' end experience will look like, and map technology from there, will achieve the deepest and most tangible business results."
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