IFAs set to rely on technology to reach ambitious growth targets

Independent financial advisers (IFA) are optimistic about the year ahead and expecting to further utilise technology to hit their ambitious growth targets, according to ValidPath.

The network for IFAs surveyed its members and found that 65 per cent were targeting revenue growth of 20 per cent or more over the next 12 months, with 19 per cent aiming for growth of 50 per cent or more.

This ambition comes amid widespread optimism among IFAs, with 95 per cent describing themselves as optimistic or extremely optimistic about the year ahead, while no respondents said they were pessimistic.

Firms in the early stages of growth were found to be the most confident, where 39 per cent felt extremely optimistic.

Early-stage IFAs were also seeking the highest revenue growth as 85 per cent were targeting growth of 20 per cent or more and 36 per cent were aiming for 50 per cent or more.

Respondents were asked where they would most value additional support. Technology and AI adoption were the most frequently cited areas, selected by 41 per cent of firms.

This was more than double the next most popular answers, growing the business and attracting new clients, and regulatory compliance, which were each selected by 15 per cent of IFAs.

More than half (52 per cent) of IFAs cited the future impact of AI on financial advice as one of the top factors shaping their outlook.

"These figures reflect just how confident and ambitious our member firms are for the year ahead, with the vast majority backing themselves to grow over the next 12 months,” commented ValidPath group commercial director, Simon Black.

“Technology and AI adoption is clearly where firms want the most support right now. The firms with the biggest ambitions know they can’t get there simply by doing more of the same – the right tools, and the efficiencies they bring, will be central to how they scale.

"It’s a real vote of confidence in the sector, and where networks like ValidPath can help firms build the foundations to achieve the growth they’re targeting.”

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