As banks seek to further integrate their wealth management businesses, investment in technology can be a core way to reduce advisor attrition, improve firm efficiency/productivity, and enhance the end-client experience. According to the latest Cerulli Edge—The Americas Asset and Wealth Management Edition, 80% of bank and trust advisors consider technology either somewhat (51%) or very (29%) important when evaluating their current firm versus another firm in the industry.

Amid accelerated advisor movement to independent channels, banks must consider leveraging their scale and infrastructure to develop market-leading technology ecosystems that enable an exceptional advisor experience. In fact, technology in the bank channel has moved to the forefront in the last 12 to 18 months, with tools such as e-signature, digital advisor-client interfacing tools, and financial planning tools at the forefront for implementation. “As banks cede marketshare amid accelerating advisor movement into independent channels, these firms are looking at differentiating through their technology stacks,” says Matt Zampariolo, research analyst.

According to the research, 90% of banks leverage financial planning tools. They are also used by almost all advisors who have access to them—just 8% of advisors have not yet integrated such tools into their practice, proving that financial planning tools have become table stakes and are a critical input into an efficient and effective wealth management relationship.

The use of artificial intelligence (AI) among firms is also growing quickly. While just 29% of advisors at retail banks currently integrate AI solutions into their practices—compared to 56% of advisors at private banks—retail bank advisors anticipate a huge increase in AI use over the next two years, with just 23% planning to use no AI in their practice in 2027.

“Advisor attrition has long been top of mind for bank wealth managers, and with 80% of advisors ranking technology as an important factor when making affiliation decisions, the case for technology investments is clear,” says Zampariolo. “Tools such as advanced CRMs and financial planning tools can be key to driving efficiencies for advisors, allowing them to spend less time on administrative tasks and more time with clients—ultimately improving the experience and boosting long-term retention for both advisors and clients,” he concludes.