Only just over half of advisors are using online tools to service their lower-value clients in a more cost-effective way, according to a new survey by Cofunds.

The UK funds platform found that 42 per cent of advisors are not using online tools to reduce the cost of servicing clients with smaller portfolios. Of the 58 per cent which did, the vast majority (96 per cent) ask their clients to input some information online prior to meeting in person, while 86 per cent deploy email updates.

Almost three quarters (73 per cent) have a client-facing website where clients can view their financial plan, while 60 per cent use text messages to update clients. Just over half (51 per cent) use Twitter, 49 per cent have a blog and 47 per cent have a corporate Facebook page.

Those not using online tools at all were asked which methodology might tempt them and the top-rated option was asking clients to fill in information online before a meeting, at 22 per cent. Next came email updates and a client-facing website, both with 18 per cent of the votes. Texts got only 4 per cent of the votes, while Twitter and blogs got 3 per cent. A corporate Facebook page was favoured by just 2 per cent of respondents.

Cofunds suggests that advisors should invest in online tools, not only to cut cost in general but so that they can develop a good self-directed offering that in time could serve as a conduit for new clients who need advice. Several firms have developed very popular self-directed or execution-only offerings in recent years to cater to clients who are just under the radar of traditional wealth managers.