Recent financial technology initiatives for wealth managers have focused on transparent and efficient delivery of information. While data aggregation and reporting were previously pain points, today they are essentials.
As a financial planner, if you aren’t utilizing cost-effective management tools like eMoney to help better inform your client of his full financial health, then you’re already behind your peers.
This is yesterday’s news. It’s the price of admission, not a growing trend that can serve as an incremental competitive advantage. Everyone wants to grow their business, and important trends helps us to do so in ways that enhance Return on Investment without detracting from other focus areas.
Not What but How
The next big FinTech trend isn’t focused on what the advisor is able to disseminate, but how they are able to do so.
Simply put, distribution is the single biggest competitive advantage that exists today. Though there is no replacement for meeting in person, we live in an increasingly digital world, and human interaction is at the epicenter of the digital revolution. While it’s difficult to build trust without ever meeting face-to-face, it’s impossible to even get to that point without some initial form of digital engagement. Historically this has meant email, but today there are far more effective means of digital distribution and meaningful engagement.
Using technology to optimize distribution is the easiest and cheapest way to reach clients, in a manner that fits into the workflow of everyday life.
In today’s world, it’s possible to track, warehouse and analyze massive amounts of data. Take Amazon for example, which knows your buying patterns based on the buying patterns of similar customers. It’s how you can know, based on patterns of interaction with your digital presence what your clients want and don’t want.
Ultimately, using the right distribution channels for your output and message, you can capture data and analyze it to help you become efficient and effective. The data will very quickly help to segment relationships, leads and different interest groups in order to optimize time and relevance of interactions.
Wealth managers need to follow three steps: 1) Build a digital storefront 2) get on the right distribution channels and 3) analyze and convert that information into effective decision-making.
Peter Hans is the CEO and co-founder of Harvest Exchange.