"Consumers have access to so much choice and information, it is very hard for them to know what to trust and how to make the right decision."
Technology is becoming more sophisticated, the threat of robo-advice looms large on the horizon and you only have to look to other industries to see the impact of the digital revolution on established professions.
So, if there a future for financial advisers?
I would say that, not only is there a future, but that trusted financial advice is more needed now than ever before. We live in a world of information overload, where consumers have access to so much choice and information, it is very hard for them to know what to trust and how to make the right decision.
At the same time, there has been little progress in rates of financial literacy and, for those people who do not have the knowledge and understanding to best manage their finances, the cost of making the wrong decision can be very high.
What’s more, trust in institutions remains low and consumers are more inclined to put their faith in personal relationships.
All of this means that there is huge demand for objective, independent and individual financial advice can help people to make the right decisions and realise more financial independence. So, financial advisers play a critical role that I don’t see being filled elsewhere.
However, in the face of increasingly sophisticated technology, advisers do need to adapt to offer their clients an experience they cannot get elsewhere and make sure they continue to add value.
This means establishing rapport with your clients and developing a relationship that enables you to understand their plans, motivations and concerns. This human understanding is something that an algorithm will never be able to replicate.
You should also make sure you partner with firms that understand your business, your challenges and the importance you put on delivering quality service. So, when you choose a firm with which to partner ask them, not just ‘how are you going to make my life easier?’, but also ‘how are you going to deliver quality to my clients?’ Don’t sacrifice experience for convenience.
Algorithms are amazing, but they are algorithms and they will not provide your clients with a personal, tailored and trusted experience, so look for technology that enables you the freedom to have more interaction with your clients, not technology that replaces your interaction.
There is certainly a future in which financial advisers can not only survive but thrive and those advisers who are able to adapt to make use of technology to complement their service, rather than replace it, can look forward to a promising future.
