Adopt robo-process to expand client base
Planners should be looking at how they can adopt robo-advice tools to attract customers and broaden their reach into new markets instead of seeing them as potential competitors.
Treysta Wealth Management advisers, Ray Jaramis, and AP Financial Solutions adviser, Adrian Patty, said some planners were turning clients away because they were unable to service them due to lack of resources or because they were not a typical client for the advisers.
While there was disquiet around the presence and role of robo-advice in financial services, Jaramis and Patty, co-founders of the XY Adviser network, said planners should not see technology such as robo-advice as being an either/or approach.
"Planner should see robo-advice and the development of financial technology as client capture tools and move their advice alongside them so they can deliver services to clients," Jaramis said.
"Automated or robo-processes do not challenge clients while an adviser can question their choices and directions. These tools can give an easy to use and run process but if clients don't understand what they are doing then an advice opportunity is lost" Patty said.
Rather planners should be using technology to elevate advice back to the intangibles and the unknowns which for which clients seek financial advisers according to Jaramis.
"If the value proposition around your advice can be automated planners should ask themselves ‘what are they doing?'," he said.
"If your value proposition can be automated or is just portfolio construction and is still articulated as value then it will be killed when technology moves further into advice.
"The value of advice has always been around education and information and planners should focus on being a coach instead of a quantitative service provider."
AUTHOR
Jason Spits
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