What's Next in Advice Tech - Takeaways from AdviceTech.LIVE
Did you know that the typical Financial Advisor spends no more than 50% of their time on direct client-related activities and only 20% of their time actually meeting with clients?
In the last 20 years in Fintech has shown a greater adoption of technology but the tech stack comparability leaves the question of “what’s my value add?”
The consolidation of large firms allows for cross-selling across products and services. Data should be used to improve user experience and integrations with various platforms. Consumers expect a certain level of interaction and technology capabilities from advisors. This creates (hopefully) a “sticky” consumer who will stay with one company and explore the additional product offerings through cross-selling.
The best advisors are the ones who speak directly to their clients. Something that you would think is a given but technology can’t replace human interaction - whether it is in-person or virtual, client interaction is essential.
Demos always look great and there can be a tendency for new independent advisors to purchase too many products and be immediately overwhelmed or choose the first thing to come along without really evaluating their needs, which can become a disaster.
When evaluating your technology options:
- Take your time.
- Don’t be influenced by the new shiny product demos. This will eliminate a lot of pain points and could ultimately confuse your clients too.
- Base your choices on how you want to run your business - consider CRM, portfolio management, etc.
- More technology doesn’t equal efficiency.
- Consider the final use of your technology to connect on a human level.
Gamification
There has been some conversation around gamification to increase engagement by rewarding for certain milestones - similar to a “surprise and delight” campaign. But either through automated tech or with a custom message the milestones and goal completion need to be recognized for gamification to be successful and for your clients to keep engaging.
Client Portal
The client portal needs to be engaging and useful. Baby boomers don’t necessarily want or need to log in on a frequent basis to their client portal, but Gen X is a different mindset. Gen X prefers apps and mobility of their financial tech. A simple and easy solution to find out what the client wants is simple - ask what they want. Provide educational resources to answer their frequently asked questions and then you can use the content in your social media posts and other messaging. Don’t be afraid to ask! The advisor is the resource. This helps create engaging marketing tools. No matter their age people are socially connecting even if it’s not necessarily on Facebook.
The client portal is not THE client experience but a part of it. Similar to binge-watching a new show - consumers don’t want to wait for their data. The portal needs to provide kudos, chat, tech support, and easy access to everything they could possibly need. The major firms are still operating within their silos and are apprehensive about exploring newer technologies.
Once again, the portal looks great in the demo but doesn’t totally deliver to the client. Examples include broken algorithm links, multiple logins, two-factor authentication, and client confusion. Broken processes lead to customer dissatisfaction. Beware of vendor integration promises! Once you start using the products you will find that they don’t really work well together without using additional technology.
Technology considerations to add to your tech stack
Asset-Map - a unique conversation tool. No more 50-100 page financial plans we make it easy!
Holistiplan - differentiate your market in your marketplace
Trust & Will - disrupting the estate planning space to streamline and humanize the process
Riskalyze - marketing, prospecting, and a financial tool
Pulse360 - all-in-one documentation and communication system
TrustMe - blockchain engine technology
AdvisorEngine - wealth management tech platform
While assessing technology remember to keep in mind considerations of business development, creating true efficiencies for notetaking, and information sharing, which are just a few elements in your decision-making process.
Portfolio Management Systems
There are too many choices - over 50! Consolidation can add to fewer choices but sifting through the options is overwhelming. Too much tech without clear differentiation. Many of the systems are essentially the same. Advisors didn’t intend on being consultants or CEOs. Too many choices lead advisors to firms that will do the work for them. So once again, learning the technology is essential.
Cryptocurrency
Advisors should have access to non-traditional investments. Mass Mutual is offering a crypto-type investment and invested $100,000,000 in bitcoin.
Advisors need to do thorough research to learn about crypto such as reaching out to thought leaders. Learn the language and HOW it works, the research is essential. Once again, it’s what the client is looking for - do they want to buy a house with crypto or just buy NFTs? The goal will drive the conversation.