For businesses nowadays it has become essential to keep up with the technological trends otherwise failing to do so puts them at the risk of being left behind in the highly competitive world of the finance industry.
Most clients now want convenience-based interactions which are considered a factor of time and effort. Therefore it is essential that as a financial advisor of the current time, you seriously consider adopting automation in your work processes. If you have already adopted it to a certain degree, you must plan ahead in order to keep yourself updated in order to stay ahead of the competition.
Automation Is An Investment Not An Expense
Data from 2022 indicates that Canada lost almost 2 million jobs, a record high, mainly due to the Covid-19 pandemic. The unemployment rate has climbed even higher and was primarily impacted by the new surge of the Omicron variant. Restricted movements and continuous lockdowns in certain areas have caused huge hindrances for financial advisors.
Keeping in perspective how the pandemic has affected the financial industry, you will realize (in time if you don’t already) that the best solution you have is automation. Not only does transferring your workflow process from pen and paper format to automated help you retain clients and serve them better, but it also allows you to grow your business further without hiring more staff members. With digitized processes, you are able to work better, faster, and more efficiently. Furthermore, it helps a lot with the often-faced compliance concerns.
Technology has progressed so far that a few years ago automation for advisors meant keeping a digitized contact list, digital documents, and e-signatures. However, now newly developed apps help advisors analyze portfolios using adaptable business models. Financial advising is no longer “one size fits all.” If you are an advisor belonging to a specific niche in the industry, finding software and apps designed to fit your particular advising niche is no longer a concern.
In addition, you now have the option to hold video conferences, update your clients via social media, and prepare interactive visual reports. All this not only helps do your business better but also allows you to build personal relationships with your clients and tailor your service according to each client's separate needs.
Creating The Right Balance Of Human Touch And Automation
There is no denying that adopting technology can be a double-edged sword. There was a time when people assumed Robo advisors would eventually force financial advisors out of business, instead, it had a contradictory effect. Although the use of robo advisors has significantly increased in recent years, so has the need for human financial advisors.
The changing global trends and client preferences now require you to implement the perfect human-machine ratio to bring efficiency, convenience, and cost-effectiveness, all the while maintaining the right amount of human connection. Clients now prefer staying connected using social media or even physical meet-ups. Advisors are expected to keep clients updated by messaging frequently, even the occasional congratulatory wishes on special occasions, newsletters, and content marketing.
Simple Steps To Automate Processes For Beginners
1. Video Conferencing Facilities
For many clients and advisors, meetings meant calling to arrange an appointment and meeting in person. Advisors preferred to get to know their clients better through these means while the clients aimed to convey their financial goals and gain assistance on how to achieve them when meeting their advisors.
However, with remote work still ongoing and clients simply preferring convenience and the desire to save time and transportation costs, many want to go digital. Setting up a camera or downloading fancy software is no longer a concern as remote conferencing has increased drastically in the past few years. Now that countless apps are accessible that allow free or at minimal cost, video conference options along with document sharing features, this provides benefits not only to the client but also removes geographical barriers for advisors and opens opportunities to gain clientele that may not be in the same area, let alone the same city.
2. E-Documentation and E-Signatures
All E-documentation has been around since the 70s, it really has taken a huge leap in advancement in the past decade. Electronic document management systems can now retrieve documents with a simple keyword search from any phone or computer. All types of file formats can be stored, indexed, and accessed from virtually any computer system in the world through cloud storage. The convenient indexing and retrieval help resolve many of the compliance hassles faced with pen and paper processes.
Of course, the obvious benefits of e-documentation are many. The following is a list of the numerous benefits that can help you manage your business and increase profitability.
- Reduces cost of paper
- More efficient document organization
- Reduce the cost of hiring
- Eliminates transport costs
- Makes processes faster
- More secure
- Human errors reduced
- Easier access to data
- Convenient sharing with clients and among employees.
- Searching topics made easy
- Reduced compliance concerns due to better accountability, transparency, and an audit trail.
Conclusion
"Younger people want everything aggregated at their fingertips and they want it quickly," said Brandon Hayes, managing director of Atlanta-based RIA oXYGen Financial. "They want a moving balance sheet and a cash flow analysis updated every night."
Despite the rising necessity to bring automation to the workflow systems of all industries, you must keep in mind that some older clients are slow to accept change while generation Z prefers everything to be done with a tap on their phone screens. However, with the inflation, and rising competition in the financial industry, it is clear that financial planning businesses now demand the adoption of automation. Statistics show that the number of positions opening for advisors will soon exceed the number of people available to fill them in Canada within a decade, creating a labor shortage.
