They’re not exactly technogeeks, but financial advisors are reluctantly embracing the world of technology, according to an online survey conducted by Investment Executive.

Advisors frequently use such practice-management tools as financial planning software, e-mail and the Web to research decisions. But, the Office of Tomorrow survey reveals, many advisors are still failing to make full use of the technologies available to them and are slow to adopt tools that would help them, such as personal digital assistants and their own Web sites.

When asked to identify the biggest technology-related challenge they face, the largest group — 35% of the more than 500 advisors who responded — chose the answer: “Getting a handle on and making better use of the software programs I already use.” The second-most common reply was: “Integrating my hardware, software and Web tools so they work together.”

“Advisors are reluctant technology adopters,” says David Edey, a Montreal-based financial advisor, IE software columnist and co-author of the survey. “They don’t have to become technology gurus; they just need to take the time to find out what’s out there and do a little training.”

Many advisors take advantage of technology training when it is offered by their firms, but few of their assistants attend the training, according to survey respondents. Edey says this should change: “Most of the time it’s the assistants who handle the technology, so they should be getting the training.”

One way advisors could integrate their programs more efficiently is through their client relationship management software, Edey says. He points out that 60% of survey participants say they don’t have a strategy to maximize their CRM programs.

With or without a strategy, 62% of the 516 respondents, or 319 of the total, say they use their CRM software “to contact clients in a systematic manner” — the most popular response. Other popular choices include accessing important data on prospects and clients and managing client contacts by building groups and profiles.

Microsoft Outlook was by far the most popular contact management software, used by 35% of respondents, with Maximizer running a distant second, at 12%. Other CRM programs used by respondents include Act and Goldmine. Five per cent of respondents say they have built their own CRM programs.

Edey believes a personal digital assistant is the key to getting the most from a CRM system. But the survey results that deal with PDAs contain something of a paradox: 75% of respondents think it is important to be connected to the office at all times — but only 38% own a PDA.

“This ties in with those advisors who don’t have a strategy to maximize contact management,” Edey says. “Your PDA is your strategy.”

The most popular PDAs used by advisors who participated in the survey were various models of Palm and Treo, as well as the BlackBerry. Those devices are all compatible with Microsoft Outlook, the most popular CRM program.

The most common reason cited for using a PDA was “to stay in sync with my client relationship management system,” an answer given by 18% of participants. These advisors are on the right track, Edey says.

“Getting a PDA and integrating it with your CRM software is an opportunity to overcome the two biggest challenges advisors face: getting a handle on the software they already have, and integrating it with their hardware,” he says.

Financial advisors are not adapting to new technologies as quickly as people in other industries, partly because of the nature of the business, says Tony Richardson, president of Vancouver-based Advisornet Communications Inc. , which builds Web sites and creates e-newsletters for financial advisors.

“Financial planning is a face-to-face industry,” says Richardson. “You can market yourself online through Web sites and newsletters, but you can’t close a deal online.”

Still, a lot can be done online before the deal is closed.

The IE survey sought to find out how advisors use online tools, what they use them for and where the limitations of online tools may lie. For example, an overwhelming majority of respondents — 95% — have high-speed Internet connections. Further, 93% spend an hour or more per day using the Internet for business purposes; 60% report that the time they spend online “feels like all day long.”

What do they do online? Advisors contact clients and gather information on the Web. They send and receive e-mail, use search engines, view stock quotes and visit financial sites and reference sites.

@page_break@Advisors use a wide range of software applications, many of them Web-based, to help them design client portfolios, and no single program dominated the responses. The most popular program was Morningstar, with 179 responses, followed by Fidelity Portfolio Pro (116 responses) and Aim Trimark Portfolio Builder (101).

Advisors also use a wide range of mutual fund research tools for fund comparisons, checking rates of return and preparing portfolio summaries, among other tasks. Again, no single tool dominated; the most popular response was Globefund.ca, which was chosen by 19% of survey participants, followed by Morningstar.ca, with 15%.

“The Internet is great for gathering financial information because there are now so many excellent financial Web sites to which you can go,” Richardson says. “Advisors can use searches and filters to pull information to support their clients.”

Even though 80% of respondents say a Web site is important for marketing and communication, more than 30% don’t have a Web site of any kind. The most commonly stated reason for not having a Web site is that the advisors wouldn’t know how to maintain it themselves.

While it shouldn’t be the advisor’s job to maintain the Web site, Richardson says, this is a legitimate concern. Many advisors consult with Web developers who know nothing about financial advisors’ business challenges and regulatory issues, “so the advisor ends up doing all the work,” he says.

The solution, according to Richardson, is to use a Web developer who specializes in building and maintaining sites for financial advisors, as did 6.4% of respondents.

A large portion of respondents, 40%, have a presence on their dealer’s Web site, but that is not as effective, according to Richardson. “Those are not true Web sites because they’re like pages within the dealership’s Web site,” he says. “They are difficult to find, and although they are provided free of charge by the dealer, they can’t be customized to specific marketing needs.”

A customized Web site is a necessity, according to Edey. “It’s your 21st-century business card, and it works for you 24/7,” he says. “You just have to put on content that’s relevant to what you’re all about. You can present your own thoughts and ideas and your philosophy of financial planning.” IE