Millennials don’t have time for an antiquated approach to financial advice and organizations struggle to keep up with them. The next generations of high net worth individuals are smart, technologically savvy and eager to have information at their fingertips. For banks wanting to cater to these investors in the future, the time is now to start anticipating needs in the ways they want to be met. Meet Digital Advisor from ASI.
Automated digital advice platforms aren’t a shortcut for banks; they are table stakes to reach the next generation of investors. It is the next wave of wealth planning and it has arrived. Software can take care of the science so that financial advisors can focus on the art of advice delivery.
Of course, technology is king. The world’s youngest generations have technology completely integrated into their lives. Whether it’s Instagramming their vacations, Snapchatting their meals or asking for advice on where to buy a car, they interact with the world digitally. For banks to keep up, they too need to have highly interactive platforms that are visually dynamic, and most importantly, mobile responsive. Digital advice technology is a sales channel that millennials can embrace. Millennials will see the value in their bank’s ability to solve their financial problems when it’s communicated to them on platforms they trust and understand.
Finance is an industry of “solutions.” Young or old, investors don’t want products; they want customized approaches to theirinvestments. Bespoke solutions don’t come cheap, but having a digital platform can cut down on a lot of the costs, and the hassle for advisors. Investors can use the digital advisor platform to set their own goals and limits. Advisors can then analyze portfolios across asset allocations, sectors, geography and more to provide specialized advice.
The beauty of digital advisor platforms is that banks pay minimal overhead, and can still customize the platform to include their business specific information, such as Portfolio Model selection and Risk assessment. Digital technology will give banks exposure to a new generation of investors who won’t become customers unless they’re approached in a manner they are accustomed to. Onboarding and servicing clients can be done frictionless and remotely without investors having to visit an office and spend costly time working face to face with advisors. It’s a plus for the investors as much as it is the banks. The easier the bank is for the clients to access, the more likely the investors are to come. The minimal overhead also means account size doesn’t have to matter, allowing even the earliest of investors to open accounts. After all, the best time to build relationships with clients is when they’re just starting out!
Financial technology should no doubt be the primary tool in any smart entrepreneur’s arsenal. How they use it is up to them, but if utilized to its fullest, advice platforms can free advisors to focus on the work that matters- being the best fiduciary to their clients.