Industry shifts towards data-driven client management

According to data released from Netwealth’s AdviceTech 2025: Turning data into growth report, which surveyed 302 financial advisers, many advice practices are moving towards digitalised, data-driven client management systems.

“Firms can now capture, organise and analyse information across a client’s entire financial life in real time,” the report said. “This shift means that advisers spend less time on data entry and reconciliation, and more time on relationships and strategic guidance.”

Of particular focus in the report are what Netwealth labels “AdviceTech Stars”, which are businesses and advisers that are successfully integrating new technology such as AI within their practices.

Currently, according to the data, AI is being increasingly leveraged in client management, with 43 per cent of advice businesses surveyed – part of the “AdviceTech Star” segment for the report – using AI in their client review processes and a further 26 per cent using it in the creation of the initial client plan.

Furthermore, cash flow modelling is also being increasingly technology and data driven, with 52 per cent of businesses surveyed either partially or fully automating this process, as well as planning end of financial year and tax strategies (27 per cent either partially or fully automating the process).

Netwealth also highlighted the increasing use of data-driven client management being present in the onboarding process.

“Onboarding is often where clients first experience a firm’s service model,” the report said.

“With integrated data and digital intake, your client or team member can complete a handful of smart forms, then the details flow everywhere they need to. For example, to your CRM platform and application forms, with little retyping required.”

The report also highlighted how this data-driven approach still allows for personalised client reporting at scale.

“In the past, advisers would manually compile data from various accounts into a spreadsheet and format a report. Now, this can be done in a few clicks using integrated reporting tools,” Netwealth stated through the report.

According to the research, 72 per cent of practices studied have partially automated portfolio performance systems, with a further 5 per cent indicating this process to be fully automated.

“AI can add value by turning raw numbers into clear, personalised narratives for review packs,” the report added.

Currently, many industry leaders and experts are encouraging financial advisers to adopt AI and new advice technologies to enhance their practices and streamline processes. According to Marshan Consulting founder Ben Marshan, advice practices which are effectively integrating AI are operating more efficiently and edging ahead of their peers.