Just as paperless and digital client onboarding solutions will be central to eliminating a major initial chokepoint for advisors, the creation of digitized account funding and asset transfer solutions will help advisors make the movement of assets faster and easier for their clients. Reducing the bureaucratic hassles typically associated with the ACAT process and speeding up account funding is a situation that is virtually guaranteed to make both the advisor and client happy.
Digital Data Aggregation And Real-Time Analytics
Of course, streamlining client onboarding and asset transfer functions through digital solutions will be of limited value without useful and actionable real-time data. The digital advice platform of the future must provide advisors and clients the ability to view all client assets through one interface, including client assets held at other financial institutions.
From there, clients should be able to access a full view of their consolidated financial data at any time, while advisors can provide recommendations that tie back to the client's financial plan as part of the final link in the chain of technology-driven financial advice that integrates each necessary stage of client service with the next.
Time To Embrace The Future
The problem with trying to predict the future based on new technology is simple: The development of any industry is seldom linear. Technologies that might seem like breakthroughs sometimes are dead ends, while further innovations that follow the launch of new tools can eclipse the original inventions.
In many ways, robo-advice technology appears to fall under the latter category. Despite initial predictions that the proliferation of robo-advice would spell the demise of the traditional financial advisor, the continued demand and potential for experienced financial guidance from qualified people by retail investors remains as strong as ever. We will now see a convergence of the two; digital tools with the experience of a financial advisor sitting alongside these solutions. Thus, providing customers with a superior technology experience while retaining the trusted customized advice that customers will continue to value from financial advisors.
This year, many unknowns will reach a level of clarity that our industry hasn't seen for some time, foremost among them regulatory clarity.
With this, comes a historic moment for our industry to turn away from fear of the unknown, and embrace the true power of new technologies when harnessed with the right vision, and for the higher purpose of helping individuals and families reach their life goals.
Jamie Price is CEO of Advisor Group, one of the nation's largest networks of independent financial advisory firms.