F2 Strategy’s 2022 Outlook Report Shows Cryptocurrency Adoption, Data Aggregation and Operations Automation as Most Significant Valuation Opportunities for Advisory Firms

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Santa Cruz, Jan. 27, 2022 (GLOBE NEWSWIRE) -- F2 Strategy today released its 2022 Outlook Report which aggregates the 2021 research it conducted with 70 registered investment advisors, wealth managers and asset managers representing more than $1.4 trillion in assets under management (AUM) to identify ten key trends that will impact wealth management in 2022. Among the findings are significant growth opportunities for advisors in cryptocurrency, direct indexing and data aggregation as well as opportunities to automate key operational functions.

“Advisors are consistently winning on client and advisor experience over complexity of portfolio,” said Doug Fritz, F2 Strategy co-founder and CEO. “Technology is no longer an expense to be reduced, but an appreciable asset that firms should invest in in order to see a dramatic effect on their valuation.”

One trend that illustrates the significant opportunities open to advisors is the belief that cryptocurrency is here to stay. More than 70 percent of wealth management firms believe that cryptocurrency will continue to be a viable investment option; however only 11 percent are currently investing in it on behalf of clients.

Most significantly, the research indicates that advisors who act now to incorporate cryptocurrency offerings in their practice could come out on top in 2022, noting a clear opportunity gap between supply and demand.

“Most advisors are just at the starting point with crypto, simply reporting it next to other assets,” said Fritz. “With the rate of crypto adoption, they’re going to have to act now to incorporate more offerings and engage more deeply in this asset or risk being left behind.”

Other key trends in the 2022 Outlook Report include:

  • A universal investment in technology tools that support workflow automation. Every wealth management firm, 100 percent, says it is investing the same or more in automation technology tools for operations and workflow optimization in 2021 and 2022. The highest rates of automation and standardization come in the areas of onboarding and marketing.

  • A majority of wealth management firms use data aggregation. A full 89 percent of firms use some type of data aggregation. Most firms, 85 percent, see it as an area for growth.

  • The ability to use direct indexing to offer portfolio customization at scale. 76 percent of wealth management firms see customization at scale as the most appealing benefit of direct indexing.

“There’s no question good technology is the single biggest factor driving firms’ growth and enterprise value higher,” said Seb Dovey, chairman of the board at F2 Strategy. “To really get there they need strong CTO leadership that can guide them toward the right solutions and implement sound processes.”

Based on all of the trends, F2 Strategy predicts firms that strategically protect their investment in technology throughout any future market volatility will be the ones that come out on top.

Trends in the report are based on data collected by F2 Strategy among the group of 70 firms over the course of 2021. The full report can be found here along with additional topic-specific reports. More information about F2 Strategy’s team and core services can be found at www.f2strategy.com. For media inquiries, contact media@f2strategy.com.

About F2 Strategy

F2 Strategy, creator of Outsourced CTO (OCTO), is a WealthTech management consulting firm helping complex RIA, wealth, bank/trust and family office firms improve their technical capabilities to build exceptional client and advisor experiences. Led by former executives of a wide range of top-rated wealth firms and family offices, F2 Strategy combines their results-driven management strategy with industry-leading, proprietary research to create customized high-tech solutions.


CONTACT: Liz Fritz F2 Strategy 650.400.4323 liz@f2strategy.com

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