How Digital Technology Can Help Advisors Manage Clients Better

Digital’ technology is influencing every business and the financial advisory profession is no different. While a lot of developments are taking place around all aspects of the business, the initial set of disruptions are being witnessed in the distribution and customer service verticals.

The rise of the online medium for distribution is what appears to be hurting the financial advisors the most. The many benefits of the self-service model seem to undermine the traditional modes of business. However, this is far from the complete picture.

Robots CANNOT Replace Humans

Robo-advisors are perceived as the key disruptors for the currently flourishing advisory business. As per a research, in India, the current AUM under robo-advisors is around US$7m and it is doubling every year. However, this does not mean the end of the road for humans.

Unlike the major disruptions in the IT and ITeS business, which involve a very high number of logic-based repetitive tasks, the investments and banking space require a lot of relationship-based customized intervention – a process that cannot be automated. Most of the jobs lost in the other domains are entry-level roles where the required skills are fast becoming obsolete.

Robo-advisors CAN Be Smart Assistants

Robo-advisors are automated programs that offer financial insights and portfolio management suggestions based on a set of inputs. Using a set of pre-programmed rules and logic, these systems work with minimal human intervention.

Talk to any advisor, and they will tell you that they spend half of their time in non-core (let’s call them ‘unproductive’) activities like managing accounts, preparing statements, maintaining documents, updating databases, etc. Robo-advisors can be used for such simple and repetitive tasks like form filling, data management, automated deal execution, portfolio tracking, comparing products, alerts, and reminders, etc.

Hence, far from being a threat, technology will help advisors automate mundane tasks and become more efficient. It will free up your time to concentrate on strategic tasks that matter more for your business.

Technology for Customer Relationship Management

Another major advantage of technology is Customer Relationship Management (CRM). Tech-tools can make you more accessible, efficient, and proficient at managing your client relationships.

Robo-advisors can help you identify opportunities based on customer behaviour so that you can build customised advice. Use automated programs like risk profilers, financial calculators, compare features, chat-bots for customer service, etc., to create superior customer experience.

The applications of digitalization are endless. And we are just getting started…

Striking A Balance

Digital mediums are drastically changing consumer behaviour. Clients seek independence and automation. The new-age financial advisor will need to communicate better, leverage data smartly, customize offerings, and meet prospects at the right time, in the right place, with the right solutions.

You will still have to find leads (data can help improve your success rate), identify needs (bots can build ideal portfolios), build rapport, and sort complications. To do this, advisors will need to embrace change. Artificial intelligence works well only when combined with human intelligence. Machines will force humans to evolve!

Edelweiss Partners offers future-ready financial tools and apps for our business partners and their clients. Talk to us to know more.

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