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Wealth firms consider organic growth the most important metric heading into 2025, according to Schwab’s RIA benchmarking survey. Despite this goal, organic growth has languished in the low single digital rates in recent years, driven by several factors including the decumulation of assets by baby boomers who control approximately 30% of wealth assets.

Another leading growth impediment facing advisors is time. A recent survey by Fidelity Institutional reported that advisors spend only 8% of their time on new client prospecting. Only 2% of their budget is spent on marketing. Comparatively, other industries are spending six times that amount, according to The CMO Survey.

Administration and compliance obligations are the leading distractions preventing advisors from investing in organic growth. Automating these functions offers a massive opportunity to regain precious advisor time to refocus on growth initiatives.

Organic growth is also challenged by high client attrition rates of over 10%. With the massive intergenerational wealth transfer under way, these rates are projected to increase significantly.

Growthtech offers a solution to these challenges as well as a platform to accelerate growth. The individual components of the growthtech platform will be familiar to most: they include client relationship management apps like Salesforce, social tools such as LinkedIn, email marketing platforms like Hubspot and sales engagement platforms like Vidyard.

The magic is not in the strength of the component apps but in how data is shared and leveraged across the platform to drive personalization, better client experience and channel optimization. An integrated growthtech platform will help identify qualified prospects, drive personalized campaigns, enable prospect engagement and generate client insights.

Digital empowerment

According to Cerulli Associates, 64% of digitally empowered advisors agree that they are able to grow faster than their non-digital peers as a result of marketing and business development tools, and processes at their firm.

Generative artificial intelligence advances the capability of this technology by tailoring content that is relevant to clients and prospects. Advisors can better connect with investors by using language that speaks to them and by providing communications that increase engagement. This capability is particularly important when communicating with Gen X, Millennials and Gen Z investors — the recipients of the intergenerational wealth transfer.

Many wealth firms have prioritized the digitization of back- and-mid-office technology over front-office investments like growthtech. While the benefits of automating operational processes are substantial and necessary, we expect to see priorities shift to include enabling advisor growth platforms.

Growthtech investment will unlock higher levels of organic growth and will facilitate inorganic growth — 92% of advisors indicate they would be willing to switch firms for better technology according to Advisor360.