Technology is vital to delivering good-quality financial advice and frequently is a key reason why advisors choose to work for a particular firm, according to a recent report by Aite Group, a US firm.

While business models have shifted to support a hybrid approach to financial advisement between financial advisement and traditional brokerage, the underlying technology has struggled to keep up, the report said.

Based on an Aite Group survey of 201 financial advisors, the report showed that 72 per cent of respondents consider technology either very important or essential in their decision to work for a given company.

There has been little integration between brokerage and wealth-management functions to date, however; slightly more than one-third of advisors have access to a bundled technology package. Recognizing the benefits of integration, however, 64 per cent of advisors would actually prefer a bundled solution, the report said.

"Advisors have definite opinions concerning which technology plays an important role in their ability to conduct business," said Adam Honoré, senior analyst with Aite Group and co-author of the report.

"Nearly half of advisors rank financial planning tools their most important application, while another 17 per cent of advisors ranked customer relationship management their top application. In order for an effective platform to be created, wealth management and brokerage functions can no longer be distinct applications," he said.