KNOWLEDGE: JANUARY 27, 2017
Competing with "Robo-Advisors" Means Investing in Technology
Those in the Financial Industry are no doubt aware of the so-called "robo-advisor," algorithm-based portfolio management that removes much of the human interaction from the process.
Should Financial Professionals be concerned? Is this the beginning of the end for the human advisor? Certainly not. While some investors may feel comfortable letting this sort of technology 'crunch the numbers' for them, it's likely that many will feel far more at ease when they know that there is also a human factor guiding them along the way.
Invest in technology, trust in humanity. This approach means that, yes, incorporating the algorithms of the "robo-advisors" into your approach is probably a good idea. But you temper that with your own judgement and knowledge. Don't forget the other human factor; your client likely has preferences and desires about his portfolio, and you can help them shape it accordingly.
Where you can, let technology do the heavy lifting. This includes your communication. Staying in touch can be a challenge, whether you are just starting out or have a rather lengthy client list. Content marketing is effective, and being able to automate great content – articles, letters, greeting cards, and more – can be the key to a successful modern practice. Marketing.Pro offers just such automation, with customer support (yes, real humans) to help you get started.
Stay in the conversation about new tech. Remember: Technology trends upward over time. Talk to colleagues about new technology, new processes. Being the last person in the buggy whip business is the last place you want to be.