T3: Rapid Uptick in Tax and Estate Planning Software By Advisors By Rob Burgess
Double-digit percentage point gains in both were notable findings in the annual advisor tech survey revealed at the T3 conference this week, as was the persistently low adoption of cybersecurity tools.
Of note in this year’s survey was the finding that two out of 10 advisors that custody with Charles Schwab report they are considering switching or adding custodians in the wake of that firm’s conversion of TD Ameritrade advisors last year. Altruist and Fidelity topped the list of likely benefactors, the survey revealed. The TD Ameritrade conversion to Schwab took the custodian’s historically high rankings off the table, with Schwab Advisor Center jumping in market share from 26.05% in 2023 to 38.43% in 2024. Following close behind were Fidelity Wealthscape, with 16.66% market share, and Pershing NetX360+, with 9.46%. None of the three scored over 8 on the satisfaction score. Fourth on the list, SEI Wealth Platform, with a 3.98% market share, and Altruist, with 2.85%, each registered higher satisfaction ratings among users. The T3 data suggests that 19.71% of surveyed Schwab- affiliated advisors said they were considering changing or adding a new custodian in the next 18 months. Among those, 11.89% said they were considering Altruist and 10.1% said they were considering Fidelity. The most notable change revealed by the survey, however, was the dramatic rise in the percentage of advisors using tax planning and estate planning software. Tax planning software went from being used by some 29% of advisors in 2022 to 43% this year. The three firms leading the charge? Holistiplan, with 31.98% market share, FP Alpha, with 3.94%, and Intuit ProConnect/ProSeries, with 2.61%. All three had satisfaction levels of over 8, but Holistiplan had by far the highest, with a 9.14.
Financial advisor use of both tax planning and estate planning software spiked dramatically over the past two years.
That was among the more notable takeaways in the T3/ Inside Information Advisor Software Survey, unveiled at the Technology Tools for Today (T3) conference this week. The survey collected responses from 2,917 firms, about half of which had less than $1 million in revenue and fewer than 20 years in business. The annual survey is meant to uncover how many advisors are using different categories of software in their practices, and the market share of the most widely adopted firms. Beyond the double-digit percentage point uptick in tax and estate planning software since 2022, this year’s edition revealed new categories of tech making inroads with advisors, including healthcare planning, data warehousing and retirement income planning.
4
Powered by FlippingBook