Digital Transformation in Financial Advisory: What Advisors Need to Know

According to Financial Advisor Magazine, in the United States, more than 97,000 people hold the CFP designation, and there are more than 300,000 people employed as financial advisors. As financial technology continues to reshape the financial industry, financial advisors have the opportunity to harness digital tools and automated gifting services to enhance client services and improve efficiency. In this blog, we will explore three key ways financial advisors can embrace these innovations to revolutionize their practice, establish a competitive edge, and better serve their clients in today’s digital age.

Embrace Digital Wealth Management Platforms

Digital wealth management platforms, like Altruist, have gained significant popularity among investors, offering automated investment advice and portfolio management services. While older generations still lean toward these traditional outlets, younger cohorts (millennials, in particular) are driving a clear shift towards digital—with preferences for text (31.4%) and video chats (28.6%). These clients’ proficiency with digital tools has led them to prioritize platforms that merge technology with expert financial guidance. By incorporating digital wealth management technology into their practice, financial advisors can streamline their operations, handle a larger client base, and reduce costs, while continuing to provide personalized client service. 

Harness AI and Machine Learning:

The power of artificial intelligence (AI) and machine learning cannot be underestimated in the financial industry. According to Black Rock Advisor Center,the average advisor spends approximately 11 hours per week on administrative duties – about 20% of a typical 53-hour workweek. The good news? AI-powered tools can analyze large volumes of financial data, generate valuable insights, and identify investment opportunities. Financial advisors can leverage AI-driven tools to automate routine tasks such as data analysis and report generation, saving time and enabling them to focus on personalized client interactions. 

Provide Personalized Client Care through Digital Tools

Digital tools have transformed how financial advisors provide personalized advice and tailored financial plans to clients at scale. Through online platforms and specialized software, advisors can gather client information, conduct risk assessments, and create comprehensive financial plans. All the more, roughly 47% of the wealthiest clients ($10 million – $25 million in net worth) say they want access to financial planning software, according to Financial Advisor Magazine. With real-time access to financial data and performance tracking, advisors can offer timely recommendations and adjustments to their clients. Additionally, by partnering with automated gifting services like Client Giant, advisors can provide their clients with personalized and automated gifting solutions, enhancing the overall client experience and retention. Integrating these services into their practice allows advisors to surprise and delight clients with personalized gifts from their financial advisor on special occasions or milestones, enhancing client satisfaction and loyalty for years to come. 

Conclusion

As the financial industry continues to evolve, financial advisors need to embrace digital tools and services to stay competitive and meet client expectations. By leveraging digital wealth management, AI tools, and automated gifting services like Client Giant, advisors can enhance client services, improve operational efficiency, and cultivate strong client relationships. As technology complements human expertise, financial advisors can create exceptional client experiences and thrive in the digital age of financial services.