Historically, financial advisory firms faced significant challenges in implementing and scaling fee-for-service financial planning due to the complexities of management and compliance associated with fee-for-service billing. This limitation resulted in planning representing only a small fraction of these firms' overall revenue. However, with the advent of AdvicePay (a game-changing platform, some would say 😉), firms have been able to overcome these hurdles and embrace fee-for-service planning as a significant part of their businesses.
Implementing technology not only enhances efficiency but also acts as an attractive recruiting tool for financial advisors. Firms that integrate AdvicePay into their workflows have witnessed remarkable results. In the first two years following implementation, these firms experienced an astounding 1060% increase in the number of advisors added to the platform. This surge in advisor adoption is a testament to the transformative power of leveraging technology for fee-for-service financial planning.
AdvicePay offers a centralized workflow that automates the entire lifecycle of a fee-for-service engagement-- say goodbye to manual tracking by spreadsheets! From the electronic signing of planning agreements to invoice issuance, secure payment processing, and oversight of financial plan delivery to clients, everything can now be seamlessly managed within one platform. This streamlined approach eliminates tedious administrative tasks and enables financial advisors to focus more on providing high-quality planning services.
Now, let's explore the top AdvicePay Enterprise modules adopted by firms in 2022, which further amplify the platform's effectiveness. The three most popular modules were Deliverables, Online Check Deposit, and eSignature. These modules enhance the fee-for-service workflow by enabling efficient delivery of planning materials, implementing convenient payment options, and streamlining the agreement signing process, respectively. Firms that embraced additional Enterprise modules saw even higher rates of advisor adoption compared to those that stuck to their core workflows, demonstrating the added value of expanding their technological capabilities.
To put the impact of AdvicePay into perspective, firms that adopted all AdvicePay modules experienced 51% more advisors on the platform in 2022 compared to firms that had not adopted any modules. This significant difference highlights the tangible benefits of utilizing the comprehensive suite of AdvicePay features for financial planning firms.
Embracing technological advancements is crucial for firms aiming to scale their financial planning capabilities and attract top-tier advisors. If you're interested in investing in your firm's future, learn more about AdvicePay for Enterprise.
Explore more trends in the 2023 Fee-for-Service Industry Trend Report.
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Posted by Sean Fannon
Sean is an Enterprise Sales Director and enjoys helping clients implement or expand their fee-for-service business! Sean graduated from Montana State University (#GoCats!) in Business Marketing and went on to support CPG and CE clients at retail before bringing his skills to the AdvicePay team. When Sean isn’t meeting with prospective clients, you can find him snowboarding, trying to keep his two children entertained, milling around the garden, or performing improv at Last Best Comedy downtown.