Doing market research the right way is extremely difficult, and takes a lot of time and expertise. We are thankful to the team over at Kitces for their independent research on how financial advisors “actually” use technology in their day-to-day practices. Their work continues to be a value-add for advisors and also keeps vendors like us accountable.
The latest Kitces Report, “The Technology That Independent Financial Advisors Actually Use (And Like), ” released on January 31, 2022, provides an in-depth overview of all major advisor tech stack categories and how advisors feel about their current solutions. We loved poring over the 74-page report, but if you haven’t gotten through it all yet, here’s a quick summary on the current state of the financial planning software market.
The “Big 3” in the market are clear, but the race is tightening
The survey findings show eMoney’s market share at 33%, MoneyGuidePro at 30.3%, and RightCapital at 19.7%, for a total of 83% across the “Big 3”.
But the survey paints a tightening race with RightCapital gaining market share away from the incumbent leaders. The report notes “When it comes to independent advisors, MoneyGuidePro appears to be losing market share to eMoney and RightCapital; eMoney also appears to be losing market share to RightCapital.”
Which financial planning software has the highest satisfaction rate among advisors?
As you can see in the above chart—straight from The Kitces Report—RightCapital is leading the pack with the highest satisfaction ratings (8.6/10).
The report specifically notes “RightCapital led the rankings in areas such as methodology, support, ease of use, simplicity, and polished appearance.”
Advisors are seeking more in-depth, comprehensive financial planning software—without sacrificing ease of use
The research found that advisors’ satisfaction with their current financial planning software showed a high correlation with these attributes: Ease of use (r=0.65), planning depth (r=0.59), technical accuracy (r=0.59) and comprehensiveness (r=0.56).
In other words, we’re seeing a “broader trend of advisors seeking more in-depth and comprehensive planning software.”
The report continues: “Advisors who do want to do financial planning are increasingly going for more advanced tools, which appears to be why RightCapital and eMoney are gaining in terms of future intentions to switch.”
So what’s the bottom line?
RightCapital is the only financial planning software The Kitces Report designated as a company to watch and to be “optimistic” about. The report lists MoneyGuidePro, Moneytree, and Naviplan as “pessimistic”; and eMoney, Voyant, and Orion all fall into the “neutral” category.
They say seeing is believing. Want to see what all the fuss is all about? Schedule a demo to gain access to your 14-day free trial of RightCapital.
To read the full report, download the complimentary copy from the Kitces website: “The Technology That Independent Financial Advisors Actually Use (And Like)”