In recent years we have seen the fintech space expand rapidly. There has been a huge development in products and software to enhance integration of data and information across multiple platforms. All fintech providers are looking at ways to provide a truly consolidated solution to support clients and financial advisers with financial advice.
Technology enhancements in this space have seen the growth of ‘Robo Advice’ which has made financial advice more accessible to lower net worth clients. ‘Robo Advice’ has the potential to access a huge market share which financial advisers would traditionally be unable to service.
Reducing fees and increasing the speed of delivery could be a significant driver for more individuals to consider ‘Robo Advice’. This may have an impact on clients that already have an established financial adviser which could spell extinction to the industry as we know it today.
In a recent interview, Ian McKenna explains that digitising financial services can drive down costs and improve end clients experiences.
Although many financial advisory firms are behind the curve on their adoption of technology, we have seen a shift in recent years with businesses considering their technology strategies and making some large investment in software for IFA’s, to design bespoke integrated solutions, such as https://www.intelliflo.com/.
Of course, it’s not just clients that benefit from embracing technology, integrated systems and software can automate many labour intensive and repetitive operational processes.
Fact-finding requirements are extensive and there are systems that can support other institutions sharing information in real time. There is also scope to allow the client to provide information directly into a back office system portal to avoid rekeying.
Significant research is required to demonstrate advice is independent and the whole market has been considered. This is largely manual or across different systems and technology solutions can reduce the burden of these elements on operational staff.
There are also considerations around how financial advisers and clients interact with each other and software could be used to make this more convenient to allow virtual meetings and further reduce costs. There are many positive steps that financial advisory firms can take by embracing technology to ensure they are giving clients the most efficient and cost-effective solutions and ensure their business continues to thrive.