I worked at Microsoft when the iPhone and iPad launched and reshaped the personal tech industry forever. Virtually overnight touch screens, apps and instant access replaced laptops, shrink-wrapped software and waiting for your device to boot up. The reset button is about to be hit for the financial advisory industry as well due to Department of Labor (DOL) rule changes, fintech, the rise of marketing technology, shifting consumer behavior, and the rise of Gen Y and Z. The ground is about to shift under our feet—all the VCs pumping hundreds of millions into fintech startups are betting on it. The only question is who will be the winners and losers. As change rumbles through the industry, marketing decisions and investments you make today will decide whether you’ll be a fast, sleek Surface Pro IV or a slow, clunky laptop.
Messaging, segmentation, product positioning and pricing—all of the traditional building blocks—are as important as ever. Though just continuing to do what we’ve done in the past isn’t enough to stop a fintech company from disrupting (or demolishing) our industry. It’s only a matter of time until a scrappy startup with a better client experience does to us what Uber and Expedia did to cabbies and travel agents.
Instead of falling victim to our changing environment, we have the opportunity to create services and add value unimaginable five years ago. The iPad was released seven years ago and is a mainstay today for businesses and consumers worldwide. I don’t think personal finance has that long—maybe two to three years at the most. How do we take advantage of the whirlwind of changes around us? Here are some ideas:
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The first order of business is to understand that public perception is ahead of the DOL. Acting in the best interest of clients is becoming table stakes. Regardless of what the President or his successors do, current and future clients expect conflict-free advice. If we’re not transparent, then we’re giving the fintech startups a decisive advantage. We should not and cannot give up the high ground, or see it as a competitive advantage moving ahead.
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Gen X and Y are digital-first generations. They expect mobile experiences, want to co-create, and demand positive social impact in addition to sound financial returns. Fintech business plans are based on more, better or easier access to information. They make it simpler to take action and then feel good about what’s been done. Our exposure is massive if we don’t deliver better experiences across every device than fintech. We do have a distinctive advantage over purely virtual websites and apps. Everyone wants digital and in-person interaction, especially when their financial future is at stake.
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Marketing has fundamentally changed over the last several years: Real-time bidding for digital inventory, targeting individuals instead of demographic segments when serving ads, business intelligence, automated workflows that deliver personal experiences. The list goes on and on. A marketing tech stack with 1x1 personalization at-scale is needed while operating with a small person team and lean budget.