How can Financial Advisors be part of the Fintech movement?

Technology has changed the way in which we do all things related to finance be it banking, trading or investing. Earlier the scope of financial advisors was limited to selling investment products. However, it now involves a comprehensive planning for the client, understanding his personal and financial goals. Financial advisors now seek to build a long term relationship with their clients. As the scope of work of financial advisors has changed over a period of time, so has the ‘way of work’. The advisors now have to adapt to smart working with use of technology.

Financial advisors need to apprise themselves as per client’s requirements. The clients are now not only well informed but are largely tech savvy and have access to huge amount of information. Also, the banking industry, mutual fund industry, insurance industry or even government agencies with whom the advisors need to deal with have changed their way of working and are adapting to more technology based approach of doing things.

Thus, technology has become inevitable part of financial advisors way of working and has helped them in many ways.

• Connect with the clients: It is very important for the advisors to reach or connect with the clients. It is critical to be able to ‘find your clients'. Mails and Social sites can help the advisor achieve the same. These platforms can help the advisors to publicize the services they can provide to the prospective clients and approach these prospective clients. 

• Educate the Client: Once the clients are identified, it is important to teach or educate people the importance of financial planning and investment. Online presentation and financial articles are a good way to approach clients who are more comfortable with technology. This is also time saving and cost effective for the advisors.
• Manage and establish client relationship: Building a relationship with the client requires a lot of faith and trust,especially, when it relates to financial matters. It is therefore important to understand the client’s requirements and provide them with the best suited financial plan. There are various software that are used for projections and analysis of client’s financial data based on the client’s age, income and goals. These software’s provide a quick analysis of data and helps the advisors to serve the client with fair amount of accuracy and efficiency.
• Managing client’s portfolio and asset performance: Once the client has agreed to the financial path, it is important to review the performance of client’s investments on a regular basis. It involves a lot of data analysis for each of the client and updating of quotes/NAVs on a daily basis. Automation based systems help the advisors to create and update client portfolio on a regular basis. Also reviewing the portfolio, understanding deviations and suggesting the client of any changes becomes viable. Updating the client about his portfolio on a regular basis helps in building client’s confidence.
• Communicate and apprise: Social Media platforms as well as message services like Whatsapp can be used to keep the clients posted with any changes in policies, introduction of new investment instruments and any other information critical to client’s investment decision.

• Knowledge Centre: Technology provides a huge amount of information on financial instruments. With the new age clients having access to a lot of information online,it is important for the financial advisors to be hands-on with what’s going on in the financial world. This is possible by way of access to technology.
• Technology in your hand: Mobile is now being largely used for executing transactions. Mobile applications of banks, insurance companies, stock exchanges etc can be accessed through technology. The advisors can now transact and communicate online. Access to information is faster and easier with use of technology.
• Paperless Work: Investment instruments are now available is soft forms rather than paper form. Fixed deposit receipts are available in soft form and stocks and mutual fund investments are available online. This has resulted in less maintenance of documents in paper form and thus making it less cumbersome.

Thus, advisors can leverage technology in building their relationship with their clients. Right from identifying a potential client, educating the client and then continuously maintaining an ongoing relationship with the client is all facilitated with the help of technology.