Digital innovation for the independent advisor

Technological and digital innovation has reshaped business models over the past few decades. But, how in particular has digital enablement enhanced the role that financial advisors play in building a client’s investment portfolio. And, what tools are available for them? Well, today, with the advent of innovative technologies, the Internet of Things (IoT) and the growing cloud environment, there has certainly been a massive shift in the way in which wealth management is viewed.

The industry has become characterised by an on-demand culture from consumers, where they expect more from their advisors. Things such as having access to view their investment progress for example. This means there is a need to change things up if wealth businesses are to remain competitive. The industry is in the prime of technological evolution, where innovation, a cost effective model and a simple-to-use wealth management platform are forming the cornerstone to investment choices by consumers.

Consumers want access and to be able to keep track of their investments, where brokers and advisors are looking for opportunities to demonstrate real value to their customers and break free from outside control. And as a result, the industry is witnessing a definitive shift in behaviour by consumers, advisors – as well as the companies that service them, driven predominantly by cost and immediate access to both theirs and their client’s portfolios.

Another key aspect that is a strong consideration for consumers today is transparency, unapologetic, real transparency that allows clients to know what they are paying for, understanding their investment returns and knowing whether they are getting their money’s worth. The digital evolution has now allowed exactly this – creating a transparent view of one’s investment portfolio. In fact, today there are bold, observant digital technologies that offer, underpinned by mathematical data sets, both the investor and broker the opportunity to view all investments in one place. These technologies also undertake estimations of how much they’re investing and the amounts they will be getting in case of retirement, retrenchment and disability – or how much their loved ones will get in the event that something happens to them.

An innovative platform such as this provides a simple, customisable view and approach to investments and allows the advisor to offer value to their clients – empowering them, as well as the investor. It provides a cost-effective means to diversify an investment portfolio – resulting in a low-cost solution with minimal risk – tailored to the profile of the client, making investments simpler and easier to understand and manage.

There is power in a simple investment proposition without the clutter of complicated business rules and seemingly endless choices. Today, a wealth management platform that integrates client’s investment information will allow for closer engagement between the investor and advisor, as both their interests will be achieved.

In fact, research indicates that 20% of consumers* enjoy managing their investments on their own and so, if we look at where the investment landscape is moving it is obvious that digital plays a critical role. Sure, not all consumers are as open to online, self-help type investing and this is why a solution, backed by a team of professional advisors and administrators, should be a key consideration when going the digital route.

Digital innovation in wealth is changing the status quo, driving forth financial control for the investor and empowering the advisor to ensure streamlined processes and a professional service offering. Those not taking heed of digital investment should take the time to investigate the benefits, or face being left behind.