This article was originally published in the WealthManagement.com 2020 Market Outlook. For more insights, click here to view the full publication.
As we progress into 2020, the adoption of newer, better technology will become a seamless addition to all aspects of our lives. This sentiment holds true with financial technology. The implementation of technology in financial services practices will likely be as natural as using an app on a phone – for both the client and the advisor.
As technology continues to advance, we see a gravitation toward a feature-rich, intuitive, and bespoke user experience in the TAMP (turnkey asset management program) marketplace in 2020 and beyond.
Breaking through the staticAs it stands, the existing TAMP solutions offered can be limiting to advisors in that they offer a uniform, static dashboard. However, as technology's focus shifts towards personalizing the user experience, TAMP technology will begin to incorporate comprehensive features to break up dashboards by the priorities and goals of each client served. This more curated approach will allow advisors to choose the metrics that are relevant to a client's needs and create accommodations for each investor's unique situation. More personalized reporting, investing and financial planning will offer a versatile suite of services bespoke to each client and account in one seamless program. Other features such as high-touch tax management capabilities, transparent billing, and integrated compliance tools will also make the lives of advisors and clients simpler.
The advisor standpointWith the rise of robo-advisors and DIY platforms, it has never been more important for the success of an advisory firm to establish their value to current and prospective clients. To remain competitive in the future, advisors need to demonstrate superior service through a personalized approach that is tailored to the client. This is something not so easily done with a pigeonholed model portfolio from automated advice platforms.
The future of customizable TAMPs allows the advisor to curate a portfolio and dashboard specific to each client, for every account in the household. Advances in TAMP technology make this transition effortless as new features provide a streamlined experience through one provider. From an advising standpoint, we see TAMP personalization as a key solution to filling the "gaps" advisors encounter in their businesses. Advisory firms of all sizes will be able to leverage these fintech advancements to service their clients and ultimately grow their business.
Through this intuitive approach to wealth management, the financial advisor can use TAMP personalization to both increase efficacy and improve the client experience.
Looking forwardMoving toward a new decade, a next generation client experience will be the driving force behind fintech modernization. In 2020 we anticipate these personalization enabled platforms to be an integral shift among TAMP offerings. Many providers are already adopting the features that will differentiate financial advising from its old ways in the New Year and beyond.