Technology is playing an increasingly significant role in the world of financial advisory services. To remain competitive, advisers need to make effective use of the available technology.
The four key technologies that financial advisers should look to deploy/expand are outlined below:
1: Risk profiling system
Having an automated risk profiling system is going to be increasingly important, providing a level of consistency that a manual process just cannot deliver. This tool can help in identifying the risks that clients need to take to achieve their investment objectives. These systems should also address the capacity for loss.
2: Practice management system
This is essentially the administrative core of an advisory firm. The system should have the capability to store client data, hold workflows, and facilitate accountancy/reporting tasks.
There is a vast range of available software for financial advisers to take advantage of, many of which are not prohibitively expensive. If you work as a financial adviser and are looking to expand your technological infrastructure, consulting a specialist provider of financial software such as https://www.intelliflo.com/ is a good place to start.
3: Client portal
Whilst not a new concept, the portal that provides the client with online access is a crucial part of the adviser’s offering. A few years ago, a website would have sufficed; however, this is no longer the case. Clients will expect a secure portal that enables document exchange and secure communication, which greatly reduces exposure to fraud. The portal should look professional, as it needs to represent your business and give a good impression.
Many of the newer portals offer personal financial management (PFM) tools. The FCA maintains a register of system and service providers. PFMs allow users to perform a range of common personal finance tasks, including creating budgets and implementing goals-based savings plans.
4: Event-based alerts
Today, clients today expect to know in real-time how their investments and other financial products are performing; therefore, a system that alerts them to any significant changes – whether positive or negative – is very much something that should be embraced. This kind of notification system uses mobile alerts/push notifications to flag any anomalies, such as a particular investment starting to look dubious. This means it can be addressed ASAP as opposed to at the next quarterly/yearly review.