Earlier this month (September 2023) the team at Kitces.com released its 2023 financial advisor technology usage report titled Kitces Report: The Technology That Independent Financial Advisors Actually Use (And Like). (Download the Report here.) The Kitces Report provides a detailed analysis of data compiled from roughly 1,400 independent financial advisors’ responses regarding the technology applications they use (and don’t use) in their practice. Advisors rated their perceptions of value and satisfaction for the various tools. The survey and resulting data covered approximately 27 different areas of application technology, ranging from core financial planning applications to student loan analysis to lead generation to risk tolerance/behavioral assessment.
The entire report is an interesting read to see the levels of adoption of technology applications for the various tools. It won’t come as a surprise that here at DataPoints we found the most interesting piece to be the discussion of the risk tolerance/behavioral assessment space. We don’t want to be coy, so here’s our favorite part of the report: “In turn, it is the newcomer DataPoints, serving just 1.9% of all advisors, that garners the highest value and satisfaction ratings of any provider.” (Report at 99.) In other words, DataPoints still has 98% of the market to grow into, but the 2% that we’re currently serving are giving our tools the highest marks in the industry for value and satisfaction. We’ll take it.