It’s hard to describe how different the advisory industry is today compared to when I started. In the past few years specifically, I’ve started to see a great divide between advisors who use technology to their advantage and those who are playing catch-up. Our world, the financial advisory ecosystem, is in the midst of major industry change, driven in large part by how clients are interacting with technology. Technology decisions made by advisors today may very well influence their success over time.
Today, advisors are faced with two major challenges that have made embracing new technology a must. I’d venture to guess you’ve run in to these too:
- Clients are increasingly tech-savvy and expect the same level of efficient, personalized service from their advisors that they get from their consumer devices
- It’s difficult to grow and scale an advisory business – particularly one that provides planning or wealth management services – without finding ways to make the advisor-client dialogue both information rich as well as efficient
The emergence of robo-advisors, whether you think they pose a real risk or not, speaks to a growing expectation from investors for anytime, anywhere access to their financial advisors, human or not. While it’s unlikely that a robot will replace the kind of relationship advisors provide it’s already a reality that investors expect an elegant combination of a relationship and the ease of a technology to engage on their own time. So I have to ask, are you doing everything you can to cater to the here and now of investors these days? Are the people in your firm who are responsible for client relationships using technology to make their jobs easier?
To get a better sense of just how much technology can serve as a competitive differentiator, we partnered with InvestmentNews on a study of how technology is transforming the client experience for investors and how firms are capitalizing on this trend.
The findings of our study were crystal clear:
- Financial advisory firms that invest strategically in technology outperform their competitors across a number of financial and productivity measures
- Technology-focused advisors – or “TFAs” – benefit from higher revenues (18% higher revenue per professional) and are seeing dramatic incremental profitability (45% higher profit per professional)
- TFAs have automated certain processes, freeing up a lot more time for client-facing activities, improving overall client satisfaction
To learn more about how your firm can step up your game, read, Elevating the Client Experience.
As Senior Vice President and General Manager, Black Diamond, Dave is chartered with setting the company’s strategy in the advisory market and leading Advent’s Black Diamond business unit.