August 2021 Issue: The Future of Advisor-Driven DIY Planning-The Future of Advisor-Driven DIY Planning by Chadwick W. Blythe

The Future of Advisor-Driven DIY Planning by Chadwick W. Blythe

Pdf Summary

DIY (Do-It-Yourself) has different implications in the financial field. It can either enable national institutions to bypass advisors and empower consumers to handle their own finances, or it can benefit independent advisors by leveraging fintech advancements. However, current DIY technology has its weaknesses. Online experiences for clients have been slow to develop due to a lack of tech-savviness, resulting in software that either prioritizes ease of use or direct client engagement, but not both. Additionally, the software lacks the ability to answer DIY investors' specific questions about achieving their financial goals. While advisor-run experiences are engaging, they fail to reduce the need for human resources to manage the process.<br /><br />Data gathering remains a significant bottleneck for planning services, with advisors relying on manual data entry and outdated forms. Planning software typically integrates investment assets but fails to incorporate the other crucial data required for creating a comprehensive plan. However, progress is being made in terms of application processing interfaces that allow different software to communicate with each other, which could improve the data collection process.<br /><br />Despite these limitations, independent advisors can use DIY technology as a tool for greater efficiency and client engagement. They have the advantage of being able to set up sophisticated technology quickly and compete for attention through social media and digital delivery. The success of DIY ultimately relies on the integration and advancement of financial planning software, customer relationship management, portfolio management/performance reporting, and trading/rebalancing. Technology may enable advisors to offer free financial planning services to lower-net-worth prospects and provide personalized investment preference software.<br /><br />Advisors and institutions recognize that seamless DIY experiences are the future of advisory relationships. Advancements in software will improve advisors' ROI by automating tasks like data gathering and expanding prospect funnels. Independent advisors have the potential to outperform larger institutions in the battle for clients within the next two to five years with the help of fintech. Overall, DIY technology has immense value for independent advisors and should be seen as a tool for growth rather than competition.

Keywords

DIY

financial field

independent advisors

fintech advancements

online experiences

data gathering

comprehensive plan

client engagement

financial planning software

seamless DIY experiences