Daily Archives: January 28, 2014

Advisors and technology, the next alliance

Advisors ideas. Picture from T-Advisor

Advisory industry faces the challenge of technological evolution. Currently, customers are connected to Internet, they look for news in well-known media, comment articles from experts and (why not?) discuss the decisions of their advisors, because the follow the market.

Are advisors a kind of old-fashioned job or to be extinguished? Absolutely not. But the profession has to take into account some changes to deal with. First of all, advisors have to be on the social networks. Do you know that the use of social media increases with wealth? People are demanding not only for information, but also for a more often personal contact through the networks or communication software (think about Skype, for instance), not limited by a certain appointment in the office. If you are on, you are in.

But the biggest challenge is how to deal with online advice. The industry expects that this will be an important trend, as the biggest competitors will come from this side. That is a logical perception, taking into account that brokers expect to see mobile trading’s share rise to 21% in 2016. Particulars, common people, will have available powerful tools to manage their investments on their own, but advisors will learn to get technology as an ally, because software for advisors will be more useful and adapted to customers’ needs and expectations.

After this description, will the customer forget the advisor as a needed expert to choose the best for his or her money? No. Customers will take surely more decisions on their own, but they will always need an expert in a world with difficult products, as the finance world is. Recently, James Pershing, partner in SunGuard Consulting Services, said in an article (subscription required) that the point to be successful in the advisory industry is communication. How? Speaking the same language. And again, how? Easy, having the same screens, the same information, the same charts, the same figures, and helping your customer with your deep knowledge to get the best choices and obtain the highest performance.

Tools as T-Advisor has this focus: it does not intend to eliminate the advisor, but reinforce his or her job through versions for common people and professionals, so that all speak the same language: an efficient wealth management.