In this charged environment of Covid-19, investors need to be tech-savvy and personally quite invested. This involvement in financial planning has led to a shift in advisory from a product-centric approach to a holistic client-centric view, where investors now seek advisors that are a one-stop solution for all their wealth management needs.
The biggest struggle independent financial advisors face is to find that perfect balance between loads of back-office tasks, staying on top of market trends, collecting insight on umpteen new financial instruments that make an entry into the market daily, and finally interacting with their investors regularly. The latter although being a top priority, often gets pushed to the bottom of the to-do-lists. This is where advisors need the most support.
Fintech gives advisors the ability to automate the important, yet mundane, back and mid-office tasks that are the backbone to their advisory business. Fintech solution providers, who bring in both domain and tech enablement, who take on these activities, allowing the advisor to focus on their core activity of client engagement have become a need of the hour.
Here we articulate the benefits to the end investor, whose advisors leverage the power that FinTech partners like Fintso offer:
1. Better engagement:
The more an investor is aware of their financial status, instruments, and gains, the better they are equipped to make quicker future decisions. Regular updates, periodical portfolio reports, daily analytical insight, and easy accessibility (through an app) to their investment and advisor are avenues that technology helps maintain and develop via two-way communication.
2. Collate, correlate, and communicate:
Platforms give advisors access to a client’s comprehensive investments at a glance. This easy accessibility translates into a deeper understanding of an investor’s financial journey. Through this omnichannel, the advisor additionally has access, insight, and information to a plethora of investment instruments at a click. Information coupled with the capability of AI & ML helps advisors pick the best-suited investments that not only attain investment goals but also complement their existing portfolio of investments.
3. Service offering:
Private wealth management tools can present a host of opportunities for investors to gain from. The ability to choose from a wider product basket which includes insurance, reducing loan costs, multi-currency investments across geographies (for example FAANGS), and much more. A robust platform delivers qualitative and quantitative insights, ensuring investments are additionally safeguarded based on insights from historic data and past performances of investments. These algorithms ensure that the investments are well within an investor’s risk-taking capacity and are aligned with their goals.
Digital wealth management solutions seamlessly consolidate data and provide a comprehensive view of financial instruments, client portfolios, and market insights. This is possible by inputs from varied data points, an enormous amount of historic data, and smart in-built computing systems. The accessibility to comprehensive information does mean that clients need to ensure the security of their information. New age Fintech platforms use state-of-the-art databases that are fully secure, encrypted and have in-built data segregation and access. Such tools help ensure that a client’s personal and transactional data is anonymized, ensuring high-end data security at all times.
5. Expert Support:
Financial advisory is not a profile that can be dealt with theoretical knowledge alone. It requires experience combined with deep insight that assists advisors make the right decisions in an emotionally driven stock market. Fintech platforms that are developed from insights and domain knowledge, ensure that the solution sets are built to address the actual needs of an Advisor.
With the emergence of the best mobile apps for mutual fund investment and premium digital wealth management software, the habits of investors are changing as they continue to embrace more technology. This makes it imperative that financial advisors offer services that are upgraded with current times. Increasingly, the choice of an advisor that is backed with the right technology partners as their backbone will become a key criterion for selection.
Answering in the affirmative the question “Does your advisor have the capabilities to serve you in this technologically advanced world?” will become the most important factor for an advisor.