The wealth management industry is moving fast, with seismic shifts happening at unprecedented speed. One of the biggest disrupters? About 10,000 advisors switch firms every year. This phenomenon impacts clients, firms, and advisors themselves, prompting a closer look at the drivers behind these transitions. Based on our recent research, it’s clear thattechnology has become a decisive factor in whether advisors stay or go.
Why Advisors Are Making the Move
Gone are the days when compensation and work-life balance alone determined career decisions. Today, financial advisors are gravitating toward firms that prioritize technology. They want tools that streamline operations for greater efficiency, elevate client experiences with seamless, tech-driven services, and support business growth through advanced capabilities.
Based on our research, 79% of advisors who switched firms said the desire for better technology was a part of their decision to move. This demand for better workplace tech underscores a critical trend: firms that fail to innovate risk losing top talent and the assets they manage.
The Role of Technology in Advisor Transitions
Switching firms isn’t without challenges. Advisors face regulatory hurdles, system integration issues, and steep learning curves as they adapt to new workflows. However, advanced technology can transform these obstacles into opportunities by simplifying the onboarding process for advisors and clients, and providing integrated systems that enable advisors to work efficiently and operate at their best.
Nearly all advisors in our study (98%) have fled firms with outdated or inefficient systems. For firms, this means technology isn’t just a nice-to-have; it’s a strategic lever for attracting and retaining talent.
A Call to Action for Firms
To stay ahead, firms must integrate technology into the fabric of their operations. Doing so does more than attract and retain advisors, it also fosters an environment where they can thrive. The benefits ripple outward, driving advisor satisfaction and better client outcomes.
Firms that lead the way are those that view technology as an opportunity to enhance every aspect of the advisor-client relationship. By investing in digital tools, they position themselves to attract the best talent and remain competitive in a rapidly changing industry.
The Future of Advisor Transitions
The insights shared in this special edition of our 2025 Connected Wealth Report reflect a pivotal moment for wealth management. Technology isn’t just transforming the industry; it’s defining its future. Firms that recognize this shift and act decisively will set themselves apart, creating ecosystems where advisors and their clients can flourish.
Technology isn’t just a tool — it’s a strategic lever. Firms that invest in the right platforms empower advisors to focus on what truly matters: delivering exceptional client service and growing their practice. The question isn’t whether firms should prioritize technology — it’s whether they can afford not to.
Darren Tedesco is President of Advisor360° and has been part of our software development since its inception, bringing together the thinkers, creators, and visionaries that help power our clients’ productivity, profitability, and growth.
Darren Tedesco
