Technology continues to transform almost every industry on the planet. According to Gartner, 91% of businesses are engaged in some form of digital initiative, and 89% of all companies have already adopted a digital-first business strategy. The financial sector is no exception to the growing presence of technology.
Experts believe that technology can revolutionize financial planning. For example, in 2022, 35% of Americans worked with a financial advisor, while 57% said they didn’t have a financial representative. But this number could change with technology making financial advisor services more accessible.
Digitalization is also making it easy to understand various aspects of financial planning. Moreover, it facilitates real-time communication and transparency. As a result, you can see financial advisors and clients embracing the technology.
Let’s see how technology is changing financial advising for good.
Robo Advisors in Financial Planning
One of the most lauded transformations in financial advisor services is the growing use of robo-advisors. Robo advisors are automated platforms that use algorithms and data analytics to allocate and manage portfolios.
This is a growing trend as robo-advisors are considerably cost-effective. In 2021, 3.5 million adult investors in the US were estimated to use a robo-advisor to handle their portfolio. It is likely to grow to 5 million adults by 2025.
While robo-advisors may seem an excellent choice, they are far from perfect. You shouldn’t over-rely on them as an investor. They cannot offer the same experience or insight as their human counterparts. They also might not be able to tailor the financial planning to suit your retirement goals.
Round The Clock Accessibility
Another huge advantage of technology is round-the-clock accessibility. With technology, investors now have 24/7 access to their investment portfolio. You can monitor your investments in real-time. That makes it possible for you to update your financial planning daily if needed.
Today, many retirement financial advisor services, including ours, have their own portals. Plus, you will see many websites, apps, and online platforms providing real-time financial updates. Websites like Investopedia, Mint.com, and eMoneyAdvisor have already made their mark as leading financial advisor services websites. With this wealth of knowledge available round-the-clock, many people are investing in stocks, mutual funds, bonds, and other investment options.
Virtual Meetings with Financial Advisors
Ten years ago, a face-to-face meeting with your financial advisor was necessary. It was probably the only way to understand the person responsible for your financial planning. But that is no longer the case today. In today’s digitalized world, most people prefer a video conference call. This digital transformation comes with a few unique benefits.
For starters, it is more convenient than weekly or monthly face-to-face meetings. You can talk to your financial advisor services team while vacationing in the Caribbean. You can still get the latest updates on how your portfolio is doing.
Secondly, it saves you time and money. You don’t have to travel miles and hours to see your advisor in person. You can make the most out of this free time. Maybe you can attend your daughter’s soccer match or take a break from your work. The choice is yours!
But most importantly, virtual connectivity lets you overcome geographical barriers. You don’t have to work with financial advisor services nearby or in your city. You could be in Wimberley, TX, and your financial consultant in Dallas or New York.
The bottom line is – you can hire a financial consultant that best fits your needs, whether they are from another city or state. And you can still stay in touch, get regular updates, and keep your wealth growing.
Increased Investor Engagement
As mentioned before, online platforms like Mint and Investopedia have leveled the playing field in financial planning. Investors don’t have to rely solely on quarterly reports from retirement financial advisor services.
With financial planning going digital, you can get answers quickly and easily. You can also feel more competent as an investor. In other words, financial advisors now have to work with increasingly well-informed investors.
That said, investors are also demanding more engagement in their portfolio management. But the volatile nature of the market isn’t going to make this a smooth sail. Investors will feel concerned or doubtful about their investments. Naturally, as an investor, you will look for emotional support and direction from your financial advisor services team.
That’s one of the major impacts of technology on overall financial planning.
Lower Operation Costs and Entry Barriers
A few years ago, investment and retirement planning was said to be for the rich. But that’s no longer the case. The trio – artificial intelligence (AI), big data, and robo-advisors, has helped lower the cost and entry barriers for investors. Today, many financial planning platforms allow you to start investing for as low as $100.
And that’s not all! With digitalization, investors can get customized wealth planning and portfolio management at a low cost. With the overall cost coming down, more and more people would want to invest for a comfortable retirement. This can lead to exciting opportunities for both investors and financial advisor services.
Technology has changed the way we travel, order food, and interact with each other. It is no surprise if it is also changing our financial planning. The global finance management industry has experienced a rapid transformation thanks to technologies like virtual meetings, robo-advisors, AI, and big data. Understanding how they will change the future of financial planning will help you get the most out of your investments. Hopefully, this post will guide you in the right direction.
Do you need retirement financial advisor services? Look no further than Koss Olinger. We are a firm with 50+ years of experience. Call us or fill out the online form now!