Today’s financial advisor industry is going through digital disruption. But between the rising popularity of low-cost robo-advisors and the traditional, offline model, a sweet spot is emerging: a hybrid system where an interactive, digital platform is combined with the services of a professional.
The advantage of this model? Quite simply: taking the client-advisor relationship to the next level, while giving clients the tools to proactively participate in the building out of their financial future.
“Digital adoption is one of the key themes that we see over and over again,” said George Fischer, senior vice president of product and technology at Advicent, a financial technology firm in Milwaukee, WI.
While in the past, the client would go sit down with their advisor to go through their financial plan and report at the end of the year, Fischer points out that current trends show that “customers want more and more visibility, and they want that visibility online and see that digital part of that relationship as important as the human interaction.”
So, let’s take a look at three examples of the latest technologies and processes financial advisors use.
1. Financial Life Management (FinLife)
Originally launched by United Capital, FinLife is a suite of tools that integrates clients’ life goals, their relationship with money and financial planning under one roof.
The platform includes a) Money Mind, which helps determine how a person feels about money; b) Honest Conversations, a candid discussion on defining what’s most important for a person in their life and what their money goals are; c) Priority Action List, which identifies a client’s top five priorities; d) Financial Control Scorecard, a report that shows a client where they’re at today and if they’re under- or overfunded; e) Ideal Life Index, which tracks how your financial plan is helping you achieve your life goals; f) Guidebook, a report summarizing everything in one place; and f) GuideCenter, which gives…