Continuing a stubbornly negative trend that arose in previous years’ Report Card series, financial advisors surveyed for this year’s Report Cards remain deeply dissatisfied with the technology tools and related support they receive from their firms.
Much like in previous years, advisors say they often struggle with out-of-date hardware, software that is not user-friendly, systems that aren’t well integrated or inadequate tech support and training. In fact, technology woes leave advisors feeling hamstrung and hindered in how efficiently they can do their jobs.
“Technology is so important,” says an advisor in Ontario with London, Ont.-based Freedom 55 Financial, “because the faster you can do your work, the better it is for everyone.”
The survey numbers from this year’s Report Cards don’t paint a pretty picture. That’s because the 1.3-point difference between the average performance rating overall (7.5) and the average importance rating overall (8.8) across all industry channels in the “technology tools and advisor desktop” category represents the largest such gap in this year’s Report Card series. This gap also reveals increasing dissatisfaction, having widened from the 1.2-point gap seen in last year’s overall averages and the 1.0-point gap seen in the 2009 Report Cards.
Although there isn’t one clear reason that explains the inability of many firms to meet their advi-sors’ expectations in terms of tech tools, some advisors suggested their firms allow their systems to become outdated or antiquated, then find it difficult to catch up afterward. Says an advisor in Atlantic Canada with Toronto-based ScotiaMcLeod Inc. : “Even one year behind is a lifetime.”
In response, advisors sometimes prefer to pursue their own technology or software options rather than adopt what their firm offers; however, not all advisors have that option. In fact, other advisors admitted they had changed firms primarily because they had run out of patience with their previous firm’s poor technology setup.
It’s no surprise, then, that ad-vi-sors praised firms that have made having up-to-date technology a key focus and put resources into support and training.
Says an advisor in British Columbia with Toronto-based Richardson GMP Ltd. : “They continue to give us improvements within a reasonable timeline.”
And although there is no denying the importance advisors place on having solid, functional and updated tech tools, advisors are slowly starting to turn their attention toward new forms of technology that could improve their productivity. In this year’s surveys, advisors gave lower importance ratings — relative to the tech tools category — in the newer areas of “support for mobile technology and the mobile advisor” and “firm’s focus on social media.” However, there are indications that mobile devices and having access to social media are becoming increasingly important to advisors.
Most advisors today can connect to work remotely, either through a mobile device or via a laptop. It’s a capability that some advisors prize. Says an advisor in B.C. with Mississauga, Ont.-based Investment Planning Counsel: “It’s very important, in this day and age, to have that type of mobility.”
A major sticking point is the cost of mobile devices and services — and whether advisors or the firm should bear those costs. But perhaps even more important than the issue of cost was the level of support a company is giving its advisors in terms of helping them get set up and synchronizing mobile devices with company systems.
“I use my BlackBerry all the time. I can do a lot more business because of it,” says an advisor in Ontario with Toronto-based Macquarie Private Wealth Inc. “Because of the support [the firm provides], my finger is always on the pulse.”
Still, many advisors surveyed for this year’s Report Cards are still opting not to use mobile technology, worrying about issues of privacy or simply wanting to keep a well-defined line between professional and personal time. Says an advisor in Ontario with Vancouver-based Canaccord Financial Ltd. : “I work long hours at the office, and I prefer it that way.”
The use of social media is a bit more controversial for advisors, and many remain confused about whether they should be using these communications tools — and, if so, how?
Most firms remain cautious about the use of social media, with some actively discouraging, if not outright prohibiting advisors from using Facebook and Twitter.
Still, many advisors said that either they had no interest in communicating with clients via social media or that they were too worried about privacy and compliance issues to incorporate social media into their communication strategies.
However, other advisors appeared to be chafing under their firms’ restrictions regarding social media — and were eager to use the tools for either prospecting or developing and deepening relationships with existing clients.
“The firm has prevented us [from using social media],” says an advisor in B.C. with Toronto-based BMO Nesbitt Burns Inc. , “but I have young clients and a young staff. It’s the way of the future.”
Firms — as well as the financial services industry as a whole — are still grappling with how to harness the potential of social media while both protecting client privacy and confidentiality and staying in compliance on other issues.
Some firms have allowed their advisors to use social media in a limited way. Many companies appear to be favourably disposed to LinkedIn, which allows professionals to network in a more business-like manner. IE