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How are RIAs faring with tech adoption as 2025 approaches? That depends on which firm you ask ... and who you're asking within that firm.
It's hard to really capture the nuances between independent advisors with blanket statements. That said, I work closely with firms that want to make the most of their CRM solutions, so tech adoption is a subject close to my heart. Because I have a front-row seat to the process, I start to see patterns of behavior.
For example, operations teams have almost universally led the charge in tech adoption. Operations folks love tech, no matter what the market is doing. For years, efficiency was the key selling point for advisor tools. If you can do more work, faster, with fewer people, profitability goes up.
Tools that promised automation and workflow improvements became the back-office heroes. The old adage of "what gets measured, gets improved" holds true, and for years, our industry measured efficiency more than growth.
But when we shift our focus to advisors, we see a different picture. Advisors, especially those on the front lines talking to clients, tend to be lower adopters of technology. Advisors excel at relationships. Their job is to talk to people, to nurture trust, and to grow those connections. I doubt you will find many advisors who got started in this line of work because they wanted to drive work flow efficiencies!
I will say there is a distinction in tech adoption between firm principals and next-generation advisors entering the industry. If an advisor is already in the middle of planning their own exit, they typically won't have the patience for a giant tech overhaul or a big push for adoption (even though those things can absolutely improve their firm's valuation, but that's a fight for another day). Younger advisors, themselves digital natives, tend to have a greater appetite for advisor tech, but their enthusiasm isn't a guarantee.
It doesn't surprise me that a cohort of advisors sees advisor tech as a burden instead of a benefit. Our industry did such a good job pursuing efficiency that I think many advisors believe that CRM stands for "client record maintenance” not "client relationship management." In other words, their tech is something they have to use, not because they particularly want to. It isn't obvious how it adds to their value or respects their time.
To put it another way, I would have a hard time selling any advisor on CRM adoption if my best pitch was, "You can use this to find your client's phone number and address."
