Why Technology Could Be Financial Advisors' Key to Growth

Last Edited by: LPL Financial

Last Updated: July 26, 2022

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In most of the marketplace, we still see that individuals prefer to receive advice from a trusted financial professional who will help them plan to solve their problems, but just as importantly provide ongoing support and make sure they execute that plan.

- Dan Arnold, president and CEO of LPL Financial

Financial markets are always shifting and changing; only those who carefully study history and watch the trends can truly get a sense of where things are headed. In a rapidly evolving economy and global horizon, that’s not an easy feat. That’s why LPL Financial offers the resources and research to help you manage your business, while watching industry forecasts for you. And, it’s why LPL is continuing to invest over a billion dollars in developing technology to continue offering the best financial advisor tools and solutions today, and into the future.

Technology is essential for advisors’ success

Dan Arnold, LPL Financial CEO and President, publicly shared this commitment to invest in technology in an interview with Barron's in 2018. In that interview, Dan explained why he believed technology would fuel advisory growth in the coming years and why LPL was investing in not only the tech development, but the support staff needed to help advisors utilize it confidently. “In most of the marketplace, we still see that individuals prefer to receive advice from a trusted financial professional who will help them plan to solve their problem,” he said, adding, “but just as importantly provide ongoing support and make sure they execute that plan.” Read the full Barron’s interview “LPL’s Dan Arnold: Tech Will Fuel Our Growth”

Since that initial investment we’ve seen tremendous growth, both internally and through affiliations, as LPL's technology drove advisors to join the firm. Additionally, LPL’s tech has received an immense amount of industry recognition and awards over the past few years, including BISA’s Technology Innovation Award. During a time that drastically altered many practices’ operations, LPL’s technology allowed advisors to navigate the pandemic and have the support they needed to establish a new normal successfully.

For financial advisors, the right technology matters

Today, even the most recent of historical events proves that a quality tech stack is essential for businesses. The right software and service support can make or break an advisor’s ability to manage their business successfully. And a look into the future proves it even further, as investors’ begin assessing their own financial values and finding their own new normal, amid growing concerns around personal data protection. Hear how advisors are using LPL Technology to increase efficiency and growth.

Both new and experienced advisors must be ready to capture new investors’ attention and trust, and better serve their current clients. The right technology can help advisors do that, and more, by:

  • Allowing clients to participate more effectively in their financial future
    The pandemic presented a unique opportunity for advisors to invest and use technology that helped them better connect with clients. And, it may have spurred many investors to reevaluate their financial goals and increase their desire to better understand where and how their money is working towards their goals.

    That can be a good thing for advisors. Sure, it may mean you have to find ways to calm investors in volatile markets, but it also means you get more opportunities to ask better client questions to understand their risk tolerance or offer more solutions. With client technology such as LPL’s Account View, clients can stay connected with advisors and see their financial future in focus.

  • Increasing the potential for multi-generational investing
    Fears around inflation, increasing life expectancy, and a chaotic housing market have resulted in many younger generations moving back in with parents to save money or become caretakers. This is a time when multiple generations, at various life stages, may be intersecting in close quarters and reflecting on how their next financial moves could impact themselves and their families.

    Despite what social media says, younger generations like millennials aren’t bullish on robo-advisors and risky do-it-yourself investing apps. So, as aging investors’ children begin to seek your financial expertise, you’ll want to be sure that the technology you’ve invested in is just as strong as the trust you’ve built.

  • Offering diverse investors opportunities for more equitable financial futures
    Investor personas are evolving and investment portfolios are no longer one size fits most. Diverse families have different investment planning needs. And, more and more investors are making values-driven decisions (i.e., sustainable investing). Independent advisors can find a variety of business models at LPL Financial that allows them the opportunity to better serve diverse investors, along with the technology to fuel efficiency and personalization.

At LPL, tech development mirrors our commitment & mission

Behind the development of LPL’s technology and tools is a commitment to LPL Financial’s mission, along with a growing team dedicated to achieving that mission. Our technology is built with you, the advisor in mind. Whatever your vision of success, we’re with you every step of the way with the technology you need to build, manage, and achieve that vision. 

What do top advisors do differently?

Discover what drives high growth numbers year-over-year, along with the six key areas LPL’s high-performing advisor’s focus on in their practice.

Why LPL Financial?

We take care of our advisors, so that they can take care of their clients. Your journey begins here. Find support for your practice at LPL.

Connect with LPL Financial

Connect in confidence with one our experienced consultants to learn how LPL can support your move to independence and help navigate the transition.