How a Fast, Interactive Investor Experience Can Help Advisors Grow Their Practice
By Rick Hurwitz
Today’s financial advisors are focused on how to grow their practice in the digital age.
This is nothing new, of course, but the way growth is done today is different from that of previous generations. Speed, on-demand access, personalization, and convenience have all become hallmarks of high-growth companies.
Buyers want their online purchases to appear on their storefront soon after placing an order. Streaming platforms have effectively eliminated the need to wait for our favorite shows to air. And carpooling platforms have thrived on the promise of transportation – where we need it, when we need it – without waiting for a cab to pass.
The same forces have also changed the relationship between asset managers and their clients.
Today’s wired investors expect their needs to be met immediately and in a highly personalized manner. Just as platforms like Amazon and Netflix have changed the way we interact with what we buy and watch, speed and flexibility will now be table stakes in the financial advisory industry. Today’s clients expect even more from their advisors – they want responsiveness, but they also want high-quality advice, positive portfolio growth, and transparency in everything that happens with their money.
This puts further pressure on advisers to adapt.
But building and maintaining a business isn’t easy in 2021. Covid has all but eliminated face-to-face interactions between advisors and their clients for the foreseeable future, self-management portfolio tools inherently lack the trust that comes with a more personal touch. , and the rapidly growing universe of investment products is increasingly confusing for both advisers and investors.
How can asset managers accelerate the conversion of prospects to customers in this environment?
The answer lies at the intersection of an advisor’s personal touch with advances in machine learning and AI. It’s not just about being fast, but rather delivering real, actionable information to clients – which every investor can understand – at the speed they expect from everything else. Personalization can be found in the back-and-forth that occurs between clients and their advisors about investment options, market trends, and other information, those dialogues that occur organically and turn into more discussions. in-depth about their long-term goals and how their portfolio is positioned. to reach them.
Easier said than done, of course.
To address this challenge, agile advisors are deploying technology rooted in e-commerce and social media, abandoning legacy services from the past while embracing innovative solutions that use AI and machine learning. As a result, they improve the customer experience and build trust at the same time, shifting to a digital culture that will be the long-term path to the growth of this industry.
Platforms like Magnifi make this a reality, delivering on the promise of better customer engagement, faster time to value for new contacts, and a digitally-driven culture that streamlines customer interactions like never before. As the world’s first natural language-based investment platform, Magnifi enhances advisors by providing access to a new world of simplicity and speed, making investment research and dialogue about it a fast and intuitive process, more engaging and more transparent.
Consider the benefits of this type of modern consultant-client experience.
Instead of taking days to research and assemble a model portfolio for a client, an advisor can sit down with them and together explore several options that match their portfolio needs at the same time.
Instead of just taking their advisor’s word for it, clients can actually participate in building their portfolio, viewing all the different products available to them at levels of transparency never seen before.
And, instead of sticking to surface information, advisors and their clients can dive deep into niche sectors and build portfolios using lesser-known investments that might outperform daily options.
The point is, the relationship between advisors and their clients has changed forever and wealth managers need to rethink how they respond to these demands in the future. It is not enough to be quick and responsive. You need to develop a personalized narrative and recommendations to differentiate your practice. And you have to do it on a large scale. Magnifi helps advisors grow their practice by simplifying access to user experiences and technological advancements that positively impact many other industries.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.