Financial Advisors Turn to Technology to Lure in Millennials as 29% Have Sought Assistance

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Financial professionals have shifted their focus to millennials, as the age group will inherit $30 trillion in the next three decades, according to statistics. The transfer of wealth has a lot of financial advisors worried, as just 29% of millennials have sought the advice of financial experts.

The great transfer of wealth will usher in a new crowd of individuals that rely on technology rather than face-to-face financial consultation.

Financial advisors have started to shift the way that they advertise to millennials with a major focus on technology. Kendra Thompson of Accenture states, “The expectation is being set by all of us, since we all live in the digital age.”

Technology is an added expense for financial advisors, but as one source states, “Technology is an investment.” Advisors are finding that their expenditure into technology investments provides near immediate returns, making it a win-win for all parties involved.

Fidelity Institutional conducted a study that found wealth management and financial advisors that used technology well in an effort to stay relevant had 40% more assets under their control than their counterparts. Millennials are accustomed to using the latest technology for banking, and the shift has changed to financial management, too.

Advisors have turned to client portals, according to reports. Client portals provide basic information to clients to allow them to see how their accounts are doing without picking up a phone.

“Client portals allow clients to feel like they’re in control, and it frees up time spent on the phone with clients that want to view account information,” states Kelly S. Olson Pedersen. Pedersen, a financial advisor, continues, “Advisors are able to give their clients robust analytic and reporting data.”

In the past, clients would receive a print out of their portfolio recommendations and were provided with far fewer options than they are today.

Mobile’s increased usage has pushed desktops and laptops to the side. Millennials demand a mobile-friendly website and have abandoned advisors that do not have a mobile-friendly site. “They might not even have a chance with that client,” elaborates Jon Patullo of TD Ameritrade.

A recent poll conducted by Phoenix Marketing International showed that more than 50% of millennials are comfortable managing their finances on their own. Investing and banking apps are most popular among millennials, according to the data collected.

Customized portfolios for every client has fallen in recent years, too.

Investment management technology is being used by many companies to manage client investments with little interaction from advisors. Technology has turned financial advising into a streamlined process.

Clients and advisors do not have a reason for long meetings any longer.

Video conferencing and online portals allow financial experts to meet with clients quickly and provide financial advice on-the-go. Client expansion and growth has changed with technology, too. Top financial advisors are able to offer services across the globe from one central location.

Automated advice is in high-demand from clients that want to go fully digital and manage their wealth.

“Millennials do not put the same value on face-to-face meetings as their parents once did,” states Tony Virdi of Cognizant Technology Solutions.

Jacob Maslow is our Editor, and has extensive experience with writing about global financial matters. He also runs a successful SEO consulting business, Mekomi Marketing