It appears clients care much less about their financial advisor’s digital technology than advisors do.
The financial services industry spends a lot of time talking about technology and there are thousands of companies around the world and tens of billions of dollars being invested in financial technology or FinTech companies to enhance the digital offering. Yet, when you ask clients of financial advisors how important all this technology is, you get a surprising answer.
In today’s show, I discuss a number of digital technology issues including:
- Recent research which suggests a financial advisor’s digital capabilities rank low in terms of the value the client gets from their advisor.
- The strategy behind offering, or not offering, robo advisor technology.
- The surprising result of my proprietary research on how many clients one advisor can work with and the real secret behind how to increase that number.
- The implications of all this emphasis on digital technology and what it means for client satisfaction and referrals.
Listen to Steve Sanduski Discuss Digital Technology
Some of the data from today’s show comes from a recent PwC survey. Here are a few quotes I found interesting.
Leaders of established wealth management firms acknowledge the importance of digital as a means to improve efficiency and engage more broadly with clients. But they also tend to see digital as an operational tool to facilitate their firm’s existing activities rather than a means to transform their proposition. Again, this is largely driven by a fundamental perception that wealth management is – and needs to remain – a human-led business, and technology is only an adjunct to this.
At the end of the day we are still humans and humans need other humans. Technology is here to help us, to make us quicker and better at what we do.
In all cases, the perceived value of a wealth management firm is driven by a combination of personal relationship and investment results. Where a strong personal relationship exists, investment results tend to be less of a focus. Conversely, where the client-wealth manager relationship is weak, value is reliant on strong investment performance.
Among HNW clients, the rapport with their advisor is cited as the second-most valued aspect of a wealth management service after investment performance. Without question, any future wealth management model needs to retain this human aspect.
I am available to consult with your firm on the issues raised in this podcast and other strategic issues facing your firm. To learn more, click here to send me an email inquiry.
Get More Tools for FREE From Belay Advisor
Don’t let the industry pass you by. Become a Belay Insider today, for FREE, and never miss a new post or podcast.
PLUS get exclusive free tools and access to the podcast transcripts. Register right now for free.
Latest posts by Steve Sanduski, CFP® (see all)
- Would You Want “10 of That Type of Person on Staff?” - July 26, 2017
- How to use “systems thinking” to become an elite advisor - January 23, 2017
- 15 non-obvious trends that will give you an unfair advantage - January 13, 2017