The term fintech refers to technology that enables parts of the financial services world to be automated. For advisors, it means using software to digitise and automate such tasks as portfolio rebalancing, data aggregation and keeping tabs on the particulars of each client’s financial situation. The result – less time spent crunching numbers, entering data and analysing spreadsheets and more time to connect and better understand clients.
Technology is rapidly changing the way clients engage – software can visually give clients a picture of their financial position with automated charts and scenarios. It also allows advisors to visually show clients comparisons between providers.
Advisors have found that digital advances have increased their ability to both serve clients and increase their client base. Fintech has created more time to advise clients, more time to discuss things like… starting a business, home reno projects, rental properties and just life in general. Fintech has also freed up time to enable a higher client to advisor ratio and therefore a more efficiently run business. So efficient we can even advise without the need to do anything – Roboadvice.
So, have we reached a position where the advisor will become obsolete? While this Fintech is increasingly more important, it remains that advisors are the key part of the financial services ecosystem. There are still things that a computer algorithm can’t advise on, there is definitely value in the human financial advisor.
Why not technology? These days we see technology everywhere, its an everyday thing and we now tend to notice when it not there rather than when it is. The financial services industry must continue to adapt and implement technology, it is important to incorporate both digital and human interaction to best serve clients.
By Ewen Cameron