Fidelity Institutional has launched what it described as an “office of the future” at its Smithfield, RI, campus for financial advisors to experiment with some of the latest technologies in the sector.

Fidelity Institutional has launched what it described as an “office of the future” at its Smithfield, RI, campus for financial advisors to experiment with some of the latest technologies in the sector.

Fidelity Institutional provides clearing, custody and investment management products to registered investment advisors, banks, broker-dealers and family offices.

The office is a physical space as well as an online interactive experience for the "anywhere advisor," the firm said. For example, at present the office has four zones: a briefing room, a mobile zone, a collaborative office and a home setting (these will change as new technologies unravel).

In conjunction with the office launch, Fidelity has released research from its Insights on Advice series, which, among other findings, revealed that 77 per cent of financial advisors are making an effort to increase their use of technology - but that nearly all (95 per cent) see challenges in integrating or using it. 

Fidelity believes this “disconnect” is attributable to a lack of knowledge around which technology/technologies is/are best or most relevant, as well as the issue of set up and integration.

Indeed, implementing new products and systems can - if not properly thought
out - be a big drain on resources, and, as one member of the audience at the second session of the Family Wealth Report Summit pointed out, “can take twice as long and cost twice as much” (see more here).

“For advisors, using technology is not about abandoning what they do so well, which is providing financial advice,” said Ed O’Brien, senior vice president and head of platform technology at Fidelity Institutional.

“It’s about finding that sweet spot that brings together human touch with technology.  With Fidelity’s Office of the Future, we can show advisors how to do that,” O'Brien said.

For example, 75 per cent of those advisors surveyed felt that they needed to use the latest technology to grow assets among younger clients - investors whose assets are forecasted to be $41 trillion by 2023 and who expect a different relationship than previous generations, Fidelity said.

Gen X/Y (those aged 21-48) investors noted three benefits of technology in their advisor relationships: communication, collaboration and accessibility. On the former point, video conferencing is a good example of how technology is facilitating online meetings.

The 2013 Fidelity Insights on Advice program consists of two studies: Affluent Investor Insights and Advisor Insights.