January 2021: Finding the Line: Personal Touch and Technology-Finding the Line: Personal Touch and Technology by Andy Mardock

Finding the Line: Personal Touch and Technology by Andy Mardock

Pdf Summary

In the field of financial planning, there is a constant debate on finding the right balance between human interaction and digital automation when it comes to client experience. While fee-only financial planners focus on providing a high-touch client experience, robo-advisors aim to remove humans from the equation. Planners need to continuously evaluate the role of technology in their client experience and assess new tools. It is essential to determine what technology can actually do and if it aligns with the expectations. Investing time and effort in research and seeking advice from fellow practitioners is necessary to avoid disappointment.<br /><br />When considering implementing new client-facing technology, planners should consider what they are asking of their clients. Rolling out new tech requires clients' time and energy to learn and adapt to the new tools. Understanding clients' preferences, aversions, comfort levels, and abilities is crucial in aligning the vision for the tech solution with clients' expectations.<br /><br />Customization is often needed to cater to individual client preferences or needs. Some inefficiencies may emerge as a result. Planners should assess if a new tech solution can be easily customized by clients or converted to a paper or manual version for those who prefer a nondigital experience. Considering adoption rates and the possibility of running two systems side by side is important in determining the benefits and drawbacks of a tech solution.<br /><br />Planners must also consider how new tech will impact their own professional life and obligations. They need to be prepared to maintain the software, stay updated with security measures, invest resources in client onboarding and training, and determine if the tradeoffs of using the technology align with their own goals and aspirations.<br /><br />One suggestion is to run a beta test with a small group of clients to gather real-world feedback and refine the process before a complete rollout. This approach allows for collaboration with clients and can lead to an enhanced client experience.<br /><br />In summary, finding the line between personal touch and technology in financial planning requires careful consideration of what technology can do, understanding clients' preferences, customization for individual needs, evaluating the impact on professional obligations, and conducting beta tests to gather feedback. By striking the right balance, planners can provide an impactful and elegant client experience.

Keywords

financial planning

human interaction

digital automation

client experience

fee-only financial planners

robo-advisors

technology

client-facing technology

customization

professional obligations