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90% of financial advisers believe system integrations are important – so what’s the hesitation?

A survey by FE fundinfo has found that 90% of financial advisers believe integrations between software providers are important to their financial planning process.

However, according to data from FE CashCalc, only 28% of financial advisers currently have an active integration between their FE CashCalc account and back-office system.

It raises the question why so many financial advisers are not integrated; especially between their cashflow planning tool and back-office system.

Efficiency gains and improved data integrity were cited within the FE fundinfo survey as the main reasons why financial advisers decided to integrate the software they use.

And according to data from FE CashCalc, for those 28% that did integrate with their back office, nearly 300,000 pensions, investments, incomes, addresses and other information were exported from FE CashCalc to a back-office system in 2022 alone.

This eliminated the need for nearly 300,000 items of client information to be manually re-keyed, helping make financial planning processes more efficient whilst retaining data integrity.

Data from FE CashCalc also revealed that those who have integrated their FE CashCalc account with their back-office system have, on average, 32 more clients within FE CashCalc than someone who has yet to integrate.

Steve Mitchell, Head of Adviser Proposition, FE fundinfo, said:

“Integrations have long been a hot topic of discussion, and more integrated technology has typically topped the wish list of many financial adviser surveys in recent years.

“So, although the data is surprising, it’s equally important for us to highlight that the number of financial advisers who are integrated is at a record high.

“We must therefore continue to work together as a profession to promote the value of integrations, whilst also working hard to evolve and improve what is available.

“Here at FE fundinfo, we recognise the part we need to play. Setting up the integrations themselves can be a barrier for some advice firms without expertise in house. In addition to developing the integrations themselves, we’ll continue to enhance the support we provide, from educational videos to 1-to-1 training sessions.

“Because if we can help and support those who are not yet integrated to start integrating their software, there is a huge opportunity for the profession to provide a more efficient and effective service.”

The FE fundinfo Financial Adviser Survey was conducted between 1 December 2022 and 27 January 2023 and received 200 responses.

FE fundinfo hosted an event for advisers in London on Thursday 11 May 2023 looking at what does the tech enabled adviser firm of the future look like? The event explored how advisers can match the needs of their business and clients to technology and discuss what innovations in financial services technology and integrations could change the advice process for the better. 

To access the recording of this event, please click here.