by Tony Vidler
There appears to be research from larger markets such as the USA to suggest there is a new type of financial adviser out there, dubbed the “e-Adviser”, who is winning way more business than other advisers are.
An e-Adviser is not a robo-adviser either….thought I would just get that one out of the way at the outset. The e-Adviser is a tech-savvy person (or bunch of people in a firm) who are using digital techniques, software systems and technology platforms to enhance the human-to-human advice delivery model.
Some of the reported outcomes for e-Advisers…
That is not an exhaustive list (and it is one I’ve compiled from various research-based articles over the last 2 years), but it is nevertheless a pretty compelling list of reasons to consider how to incorporate more client-focused technology solutions into a practice isn’t it?
Basically the bottom line from the research on adviser technology use is that those who are rapid adopters and who look to build strong tech-based rapid communications systems and internal efficiencies is that they make get more business, get more clients from the hard to reach segments of the market, keep more business for longer and don’t have that much trouble handling service levels for significantly bigger books of business. Oh…and they make more money.
There is a certain sense of Darwinism about these findings. The apex animals on the planet achieved dominance by figuring out how to use tools to achieve things that their personal physical attributes could not achieve. This ability to identify how to create and then use “technology” became the key differentiator between the species who thrived, and the species who merely existed or worse, faced extinction.
Those who are slow to adopt technology as a means of connecting and communicating better while creating efficiencies inside their practice will certainly face a tougher path than those who do so enthusiastically and quickly.
It seems that the e-Adviser has little to fear from the Robo-adviser, especially as the e-Adviser is most likely to emulate the aspects of robo-advice which make sense from the client perspective. Why would that be true? Because the e-Adviser is embracing the opportunities that technology presents to deliver services quickly and in the manner that clients prefer, and that approach is clearly delivering the freedom to do more business with more people.
When it comes to technology use by financial advisers, it really does look like it is a case of get with the programme, or get left behind.