Tech is essential to building a thriving financial advisory firm. While you may have adopted fintech solutions when you first established your business, it’s wise to regularly reevaluate your systems.
Financial technology is constantly improving and your business is always evolving. The solutions that served you well five years ago might not be the right fit for you today.
Let’s explore how the latest fintech solutions can help investment advisors like you achieve better results in the future.
- Use Fintech To Automate Back-Office Processes How much time do you lose each week to administrative tasks? Many advisors spend hours manually managing back-office processes like compliance, reporting and trading.
- Spend More Time with Clients When tech-enabled automation frees up time in your day, you can reinvest that time in meaningful client interactions. Many advisors spend less than a quarter of their time with clients, but personalized attention is exactly what investors crave.
- Demonstrate Your Value and Expertise with Fintech
- Adopt Fintech Solutions To Accelerate Your Sales Cycle
- Build Upon Existing Relationships
Fintech solutions have the power to automate many of these rote back-office tasks. A compliance fintech solution can help you streamline testing, reporting and auditing of your internal processes and procedures.
A trading tool like Eclipse that integrates with your custodian can remove many of the tedious back-and-forth processes that go into trade execution and portfolio rebalancing.
And a risk intelligence fintech platform provides you the flexibility to test and build new models, strategies and portfolios seamlessly — then move forward with the approach you choose.
Research from Invesco Global Consulting found that advisors who reached out personally to their high-net-worth investors just once per quarter retained all of those clients. (For more on this research, listen to Invesco’s Director of Consulting Services, Brett Van Bortel, on The Weighing Machine podcast.)
That same research from Invesco found that advisors who reached out slightly more frequently — between seven and 12 times per year — not only had a 0% chance of losing those clients, but they also experienced an uptick in new business referrals.
With consumer-facing fintech making it easier for individuals to invest their own money, advisors must find ways to demonstrate their value and expertise.
Stress testing client portfolios through a risk management fintech solution can help you do just that. Investors who rely on robo-advisors or self-directed investing apps have no way of validating their investing decisions. Those who turn to an experienced advisor have an entirely different experience.
Stress testing tools allow you to walk clients through hypothetical outcomes of your proposed strategy. Investors are more comfortable giving you the go-ahead on an investment strategy they’ve seen road-tested. And they have greater faith in your abilities and value as a fiduciary when you can demonstrate that you’ve designed a portfolio that’s aligned with their financial goals and is properly insulated against risk.
A crucial component of growth is driving new business. Some advisors struggle to convert prospects into clients, and it becomes more difficult to win business with nervous investors in turbulent financial environments.
Fortunately, fintech can help you accelerate your sales cycle. Orion Risk Intelligence incorporates a 3D Risk Tolerance Questionnaire, enabling you to quickly identify a prospect’s risk appetite. Knowing where an individual stands allows you to tailor your investment strategy and talking points, addressing this prospect’s specific hesitations or fears.
Risk Intelligence also gives investment advisors the power to build custom recommendations in a branded proposal, complete with robust stress testing and risk analyses. Show prospects exactly how your strategy aims to mitigate the risks, and demonstrate the kind of growth that’s possible if they opt to work with you.
Blending cutting-edge fintech solutions with active listening and other EQ skills is the key to closing more new business faster.
What about those client relationships you already have? Maintaining them is essential, but is there an opportunity to expand them also?
It’s not uncommon for investors to have accounts scattered across various financial institutions. Past-employer 401(k)s, inherited accounts, and abandoned robo-advisor accounts — every one of these forgotten accounts is an opportunity for you to grow AUM.
A fintech solution that allows you to show the value of consolidating holdings under one advisor can help you convince existing clients to migrate all of their assets to your firm.
With Orion Risk Intelligence, you can build a portfolio recommendation that reflects all your client's holdings. Then, run side-by-side stress testing and risk analytics on their current allocations as compared to your proposed approach.
When investors can see first-hand what they stand to gain by adopting a cohesive strategy with one advisor, they’ll understand why they should consolidate their holdings under your management.
Fintech provides investment advisors with the tools to drive growth and fuel success. No matter what improvements you hope to make to your firm’s strategy — whether it’s a focus on your sales cycle or your existing client base — there is a fintech solution to help you achieve your goals.
If you’d like to learn more about what fintech can do to support your firm’s ambitions, reach out to us today to schedule a demo.
Access to the services presented is provided solely as a service to financial advisors. Orion Risk Intelligence does not make recommendations or determine the suitability of any security or strategy. Past performance of a security or strategy does not guarantee future results. Orion Risk Intelligence research and tools are provided for informational purposes only. While the information is deemed reliable, Orion Risk Intelligence does not guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with respect to the results to be obtained from its use.
2398-OAT-12/12/2022