Tuesday, January 7, 2019 Stamford, CT USA — For financial advisors, technology truly is a double-edged sword. Growing numbers of financial advisors fear that technology will put them out of business. However, it’s becoming increasingly clear that technology is also the one tool that will enable financial advisors to fend off robo advisors and other competitors and allow them to retain clients and grow assets.
New data from Greenwich Associates reveals that 43% of financial advisors globally believe robo-advising will shrink the number of financial advisors in the next five years. However, the data also suggests that retail clients are not looking for robo advisors, but instead want human advisors to use technology to augment their relationships.
“There are a multitude of tools and technologies available to improve advisor performance and decrease costs,” says Brad Tingley, Market Structure and Technology Analyst at Greenwich Associates and author of Financial Advisors Differentiate with Trust, Technology. “Armed with technology and data, an advisor can distinguish themselves from their peers, grow their business and make their clients happier and wealthier.”
Financial advisors who have embraced new technologies have experienced immediate improvements, with approximately 70% citing improved efficiency in client management and communication as well as significant improvements in document management and compliance tools. Furthermore, improvements in technology for clients have actually increased their trust in their financial advisor, with 37% of U.S. respondents reporting it has increased their trust, compared to only 1% that are now less trusting.
“Advisors who fail to integrate digital tools will see their clients and assets under management at risk,” says Brad Tingley. “Change in this regard is never easy, but embracing it is the only path forward.”