Two-thirds also say that integrating AI with financial planning will improve the advisor/investor relationship. Among the top ways includes increasing accessibility and affordability of financial planning, protecting clients’ assets against market risk, allowing advisors to make accurate predictions about clients’ needs and behaviors, and allowing them to provide more personalized, holistic financial planning. The use of AI is one more example of how technology that puts clients first can drive greater growth and greater profitability.
Leave The Competition Behind
Industry disruption makes competition fierce—and when this happens, players must innovate and adapt to succeed, or be left behind. Just as innovation at Netflix drove Blockbuster out of business, the innovation driving the success of Uber and Lyft is putting the squeeze on traditional taxi services. As demand for holistic financial planning increases, RIAs and fee-based advisors who adapt their practice to use technology like integrated planning platforms, advanced analytics and artificial intelligence will have a clear advantage to attract new clients, retain more satisfied clients and leave the competition behind.
But while technology can create a competitive advantage, nothing beats human connection. Investors continue to place a premium on trust, face-to-face communication and a personal one-on-one relationship. It’s clear that your clients still want a real relationship with you—and technology, no matter how insightful and effective, is no replacement for that. Think of it this way: while your client might pull out their smartphone and use Uber or Lyft to take the guess work out of finding a ride to your office for their annual meeting, they still want to meet face-to-face with you when they get there.
Craig Hawley is head of Nationwide Advisory Solutions.