More than two-thirds of advisers increased the amount of money spent on technology last year, according to research.
Some 69 per cent of advisers had upped their tech spend, with 72 per cent of those citing improved efficiency as the reason why, according to FE Fundinfo’s latest financial adviser survey.
Cashflow modelling was the most popular piece of technology advisers invested in, with 36 per cent of respondents saying they had changed or added this tech in the past year.
Client portals and risk-profiling tools were also popular investment areas, with 30 per cent and 23 per cent of advisers picking these as the area of tech they had invested money in.
When asked what factors are most important when choosing a technology provider, the top three were ease of use, integration with existing software and tools and cost.
When it comes to the barriers preventing advisers from embedding technology further into their business, 58 per cent of respondents said it was a lack of integration between solutions, 50 per cent said it was the cost of implementation, and 49 per cent said it was finding the right software to add to an existing tech stack setup.
FE Fundinfo conducted the survey of 200 UK-based financial advisers between November and December last year.
FE said data from FE CashCalc showed 69,000 digital fact finds were completed in 2021, higher than the figures for 2018, 2019 and 2020 combined.
Oli Greenspan, adviser sales director at FE fundinfo, said the past couple of years presented a unique opportunity for advisers to take an active view of their tech stack.
For many, it would have become fairly obvious throughout the period of remote and home working where gaps in their technology stack existed and these would have most likely been addressed throughout the course of the pandemic, he said.
Greenspan said: “What we can see clearly though, through the financial adviser survey is that an industry which was perhaps unfairly seen as late adopters to digitisation, is not only recognising, but seizing the opportunities presented by a growing range of hardware and software which are bringing greater efficiencies across the board.
“While the research shows there is still much to be done in bridging existing gaps by service providers and technology enablers, advisers are all too ready and able to invest in technology which will aid their business when it becomes available.”