As the gig economy continues expanding as a proportion of the overall workforce, financial advisors have a unique opportunity to tap into a growing niche of clients, WealthManagement.com writes.
Having to Handle All Aspects of Financial Planning Themselves
The gig economy already makes up 34% of all workers and is expected to grow to as much as 43% by 2020, according to research from Intuit cited by the publication. Potential clients are clearly there, but advisors have unique challenges in serving the self-employed, WealthManagement.com writes. Gig economy workers typically demand more guidance on taxes, saving for retirement and health insurance, according to the publication. And the lack of a consistent income for most such workers further complicates planning, WealthManagement.com writes.
Betterment, however, is just one technology company realizing the potential of offering financial planning to the gig economy workforce, according to the publication. Last year, the robo-advice provider teamed up with Uber to offer its drivers retirement planning straight through the company’s app, WealthManagement.com writes.
Other fintech providers are steadily rolling out tools that can help financial advisors take on gig economy workers as clients, according to the publication. These include client portals for account aggregation and monitoring performance, budgeting programs that can help with managing cash flow, and white-label robo-advice platforms for automated investment advice, WealthManagement.com writes. And eMoney has recently launched a new marketing tool for advisors to go after gig economy clients, according to the publication.
