For years, Advisory Firms and the financial world at large have wavered about innovation. Companies wondered if it was better to bite the bullet and go through the pain now or simply duct tape fix the cracks and wait for some moment when the choice would be forced upon them. That moment is now.
The coronavirus crisis has sent the markets into unprecedented upheaval and those without the ability to take their functions onto digital platforms and survive electronically are drowning. FAST!
However, those who took the time to grow with the future in mind, hired the necessary people, implemented the right system, and put their money into the needed infrastructure are looking pretty good at this moment.
For those who didn’t innovate and shunned technology, there’s still a chance to grab a rope and pull yourself from the rushing waters. Here’s what you’ll need to survive.
E-Signatures Program
Whether it’s DocuSign or one of the plethora of other options, anyone with experience knows that e-signatures are the way of the future--we’d argue they are already the way of the present. Of course there are concerns regarding security, compliance, document storage, custodial limitations, and the general resistance to change or technology investment. But with social distancing quickly becoming the societal norm, and “shelter in place” orders spreading across major cities, asking for someone to come into your office for an actual ink signature may be the straw that breaks the camel’s back.
Digital Client Portal
Today’s clients want information at their fingertips. That’s just the way it is. And the wealth management world will only be growing more that direction in the future as millennials take over the majority amount of wealth that’s been left to them.There are a ton of great options out there when it comes to educational client portals, and this is the time to engage.
If you’re wondering about the validity of the above statement, it may be helpful to know that a research report by Scorpio Partnership for the CFA Institute in 2017 showed that advisors across the board significantly underappreciated their client’s expectation for better digital tools. The report also showed that nearly 40% of all wealth clients over the age of 55 considered the strength and breadth of a digital client offering was one of the core values of their wealth management experience.
Wealth Transition Planning
The unfortunate reality of COVID-19 is that it mostly affects those over the age of 50, with the highest mortality rates found in those age 70 or older. That means it’s important for advisors to start spending time working on wealth transition strategies with their clients and dependents.
Improved Performance Reporting
This is not the time for financial advisors to get caught up compiling answers for clients using legacy tools. It’s time for advisors to be proactive and reach out to them with data and insights. There are excellent performance reporting solutions out there that provide flexibility in reporting periods, aggregated external assets, integrated financial planning data and even SRI/ESG exposures.
What’s Next?
Those who have upgraded and are running the right technology should be prepared to shine. This is the moment you’ve been waiting for. And whether you were born for it or achieved by staying ahead of the curve, you deserve your moment in the spotlight.
Those who have not upgraded their technology are obviously a bit behind, and some will drown. But those who are willing to grab ahold of the moment and move nimbly will be able to survive.
In good news, there are far better tools available today than there were even a year ago, so there may even be an opportunity to use this moment to pass your better prepared competition. Don’t wait.
Remember, “Some are born great, some achieve greatness, and some have greatness thrust upon them.”
