The technology landscape has changed for today’s financial advisor, presenting new opportunities. Digital advice software firm Oranj discusses the evolution in the industry and the challenges for advisors in this article:
The Rise of the Digital Advisor
Perhaps no recent phenomenon has drawn the attention of the financial advisory business as much as the rise of robo-advisors.
These low-cost advisory services, based on algorithmic models and often backed by venture capital, may have been dismissed at first as internet-spawned curiosities. Many traditional advisors may have been initially skeptical that any kind of automated, hands-off service would appeal to an investor market broader than a small cadre of tech-obsessed millennials.
That perception soon changed. The robos’ steady and rapid growth – even if accounting for only a small percentage of the industry’s total assets under management – turned advisor derision to, in some cases, fear.
Now, the landscape is changing again as advisors recognize the demands of the marketplace and the opportunities presented by digital technology. As investors increasingly interact with digital platforms in all aspects of their lives, including the realm of financial and investment advice, they expect more efficient interactions and service delivery from their financial advisors. Advisors are realizing that improved technological efficiency beyond the traditional back-office role can help increase client retention rates and attract new clients.
The challenge for advisors is to create a unique, differentiated experience for clients. What are some of the features clients are looking for?
- A website that is easy-to-use and demonstrates that the advisor has kept pace with changing technology.
- An onboarding process that is as convenient to use as filling out an online credit application – or becoming the client of a robo-advisor. Easy onboarding signals competence on your part. Technology is available to make the process more efficient.
- 24/7 access to accounts, presented coherently with the latest advisory software integration tools.
- Consistent ongoing communication based on clients’ individual preferences.
By choosing the right digital management practice solution, advisors may realize an added benefit. The right digital tools can help advisors program, execute and measure the good marketing ideas they have always had.
Webinar Invitation and More Information
Click here* to register for the Oranj webinar “Reshaping the Client Journey with Oranj” on Wednesday, July 26 at 4 p.m. ET.
Click here* to learn more about Oranj and to schedule some time with us.
Click here* for an expanded discussion from Oranj of digital advisor opportunities.
Explore the Scottrade® Strategic Resource Center to connect with Oranj and other organizations that specialize in technology, compliance, research, education and marketing. Many of these resources offer discounts to advisors who custody assets with Scottrade. (Scottrade provides this resource for informational purposes and does not specifically endorse any of the businesses within the directory. Scottrade also does not pass judgement as to whether those services are appropriate for specific business needs. Be advised this is not a full and comprehensive list of businesses that offer these types of products or services and that advisors are responsible for doing adequate research before making any purchases.)