Banks Turn to Tech to Stem Advisor Attrition
As banks push to more tightly integrate their wealth management businesses, technology investment is emerging as a critical lever to retain advisors, boost productivity, and improve the client experience, according to new research from Cerulli Associates.
In its latest Cerulli Edge—The Americas Asset and Wealth Management Edition, the firm found that 80% of bank and trust advisors view technology as an important factor when evaluating their current firm versus competitors. Of that group, 51% said technology is “somewhat important,” while 29% described it as “very important.”
With advisor migration to independent channels accelerating, banks are increasingly leaning on their scale and infrastructure to differentiate through more robust technology ecosystems. Over the past 12 to 18 months, tools such as e-signatures, digital advisor-client interfaces, and financial planning platforms have moved to the top of bank implementation priorities.
“As banks cede market share amid accelerating advisor movement into independent channels, these firms are looking at differentiating through their technology stacks,” said Matt Zampariolo, research analyst at Cerulli Associates.
Financial planning tools, in particular, are now nearly ubiquitous. Cerulli found that 90% of banks offer planning software, and adoption among advisors is high—just 8% of advisors with access have not yet incorporated the tools into their practices.
Artificial intelligence adoption is also gaining momentum. While only 29% of retail bank advisors currently use AI solutions, compared with 56% at private banks, expectations are shifting quickly. By 2027, just 23% of retail bank advisors expect to use no AI in their practices.
“Advisor attrition has long been top of mind for bank wealth managers, and with 80% of advisors ranking technology as an important factor when making affiliation decisions, the case for technology investments is clear,” Zampariolo added.
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