Financial advice firms fully embracing technology generate more revenue and have more assets under advice and clients than low adoption rivals.

Technology-savvy advisers generate 119% more recurring revenue, 105% more revenue, 86% more AUA and service 39% more clients, says a new study.

The latest eAdviser Index from fintech Intelliflo analysed nearly 4bn interactions by users of Intelliflo Office to score and segment where each advice firm is on its specific adoption journey.

It examined how firms used the functionality within the software across six key areas: valuations, income, document designer, personal finance portal, activity management, and data quality.

Firms were segmented into four cohorts based on their scores: Explorers, Adopters, Embracers and Champions.

Advice firms in the 'Champions' category outperformed firms in the 'Adopters' category in record-breaking numbers, the firm said.

Breakdown of performance for tech 'Champions' 

Source: Intelliflo eAdviser Index survey

Nick Eatock, chief executive of Intelliflo, said: "Adviser firms that fully harness technology are leaping ahead. Technology is proving essential for growth and efficiency.”

Richard Wake, chief customer officer at Intelliflo, said: “2024 has been a breakthrough year, with technology adoption accelerating faster than ever. Advice firms are seeing for themselves the business benefits of adopting technology.”

The research was based on the following group descriptions:

Explorers (score 0 - 274) - Firms typically achieving reasonable scores regarding income processing functionality and have an automated electronic valuation functionality. They are yet to maximise the capabilities these functions offer and have not fully begun to utilise the further efficiency-driving capabilities they have access to.

Adopters (score 275 - 399) - Firms, in the 25-50% range, have a good adoption of technology and are typically strong in the core areas that an advice business requires to function, eg, valuations and income processing. However, the firms are yet to fully leverage other efficiency-driving benefits.

Embracers (score 400 – 524) - Firms have a very strong adoption of technology and are typically very strong in most areas. The firms have achieved an eAdviser score in the 50-75% quartile of total scores. Many have established a technology vision, have delivered much of it and are well on their way to achieving Champion status.

Champions (score 525 – 700) - Firms which have achieved an eAdviser score in the top 25% of total scores. To get this they must be using all parts of the system and must be using a number of the areas very well to the extent of achieving maximum points.