Today’s economic conditions, COVID-19, and industry compression is undoubtedly creating tougher times for advisors. Clients ask advisors to be many things including money Psychologists, financial planners, relationship managers, asset managers, and more. If the stock market’s volatility continues, workers remain furloughed, laid-off, or have lost their jobs entirely financial advisors will continue to be the ones that clients turn to.
But among the most difficult challenges facing advisors today is maintaining relationships and exceeding their client’s expectations while dealing with their own personal and business problems. The next few months will continue to be difficult for everyone, but more so for advisors that fail to address these key areas:
Communication- There are more ways to stay in contact with clients other than face-to-face meetings, and there are multiple teleconferencing technologies to do so. A constant flow of communication should happen during the good times and the bad, regardless of market conditions, to effectively maintain a stable relationship.
Information Management- Clients come seeking financial advice on their multiple accounts held at various custodians, making information management critical. As WealthTech evolves, so do client expectations for on-demand information and services. Your time is valuable, and the only way to deliver information quickly with less human capital hours involved is through information management technologies.
Simplifying Tasks and Increasing Margins- If you have not built a tech stack that enables you to manage all the moving parts of your business efficiently, you will be left behind. With fee compression likely to continue, cutting costs is the only way to preserve your business’ profitability. Automation of administrative tasks, client billing, client servicing, and client accessibility can simplify with the right tech stack components.
The more technical aspects of wealth management, such as portfolio construction, trading, and rebalancing, are simplified when tech stack components combine with integration partners to create a complete system for the advisor. Employing an advanced WealthTech is an effective way to help advisors maximize their time, leaving more time to meet with clients while being rewarded through increasing margins and profitability.
WealthTech continues to provide enhancements for making an advisor’s business easy to manage, even when the squeeze is on for advisors to do more. The advisors that fail to evolve and adapt to new WealthTech will face serious challenges. We at AdvisorPeak see this as an opportunity for advisors that rise to the challenge of this difficult time.