02 Jul 2019

Technological Disruption: What’s in fo​​r financial advisors?

Flight and hotel booking sites like Expedia have eliminated traveling agencies. Local cable TV is no longer the go-to entertainment for Singaporeans with the rise of Netflix. Even for the local public transportation industry is disrupted by the entrance of private hire cars, such as Grab and Uber.

Will you be the next to be replaced by technology?

Rise of Robo-Advisors

Robo-advisors are online platforms that use algorithms to help consumers invest and manage their financial assets,

People with a minimal starting capital are now turning to robo-advisors, as they are a low-cost alternative to hiring a financial advisor. Similarly, for those who are to be busy to meet their financial advisors, robo-advisors can be easily accessed at any time through the Internet. This makes it more convenient for their clients.

So, what’s your competitive edge over robo-advisors?

1.    More personalized service

For robo-advisors, investment decisions cannot deviate from the algorithms and investment choices are hard to customize. If clients are interested in certain investments, they still require you to give them advice.

Clients also have short-term and long-term goals they want to achieve. You can understand their needs better through a deep conversation. Subsequently, personalizing your clients’ investments and insurance according to their money-related concerns.

2.    Wider variety of products to offer

In addition, robo-advisors mostly focus on mainly on exchange-traded funds such as stocks, commodities, and bonds. They cannot help clients integrate their finances, taxes and real estate planning.

Therefore, it is important for you to keep yourselves updated about other areas in the finance industry. Read this article to find out what are some of the topics clients are interested in!

3.    More experienced

You have been trained by managers and mentors with great experience about the industry, while robo-advisors only launched recently. They have not tested robo-advisors in the long term. And, not all of them are capable enough to help their clients grow and manage their wealth.

That’s all for today! Stay tuned for articles so that you will be updated on the latest financial advisory strategies. Alternatively, contact our Growth Consultants to find out more about our upcoming masterclasses and programmes.

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