Your Take: Beyond Portfolio Management
James Rockwood, founder and chief executive of CapIntel, uses technology and education to elevate investor experiences.
Modern investors expect more than a traditional, numbers-based approach from their financial advisors. They want comprehensive solutions that consider their goals, values and life circumstances in an integrated financial strategy.
Advisors who embrace the desire for personalization will stand out, especially as the emerging generation of investors demands a modern, tech-forward experience.
Portfolio Management Technology Delivers Value to Clients
With the right digital tools and platforms, advisors can go beyond basic portfolio management to deliver a truly holistic client experience. Leveraging technology to deliver increasingly unique and memorable client engagement helps advisors demonstrate value, build trust, and guide clients toward successful outcomes. For example:
- Proposal generation tools allow advisors to quickly generate presentations with recommendations that reflect a client’s financial goals and personal values.
- Reliable, global data streams for mutual funds, ETFs and equities allow users to compare an unlimited number of products and portfolios instantly, enabling informed and confident decision-making.
- Connecting investment recommendations to clients' unique life ambitions strengthens the advisor-client relationship. Today’s digital environment is built on tailored ads, recommendations, and experiences, so personalized services are not just wanted but expected. This carries through to financial services, as CapIntel’s 2024 Investor Engagement Report found that 65% of investors say that they stick with their advisors because they demonstrate a clear understanding of their unique preferences and situations.
- Real-time analytics provide deeper insights and support the delivery of tailored financial advice while enhanced collaboration tools streamline team operations and boost productivity.
Financial Education Key to Holistic Approach
Financial education is also a key component of this holistic approach. The Global Financial Literacy Excellence Center’s 2024 index shows that financial literacy in the U.S. has remained at around 50% for eight consecutive years, highlighting the need for better client education.
Advisors have the opportunity to manage wealth while also empowering their clients with the knowledge and confidence they need to make informed choices. By simplifying complex concepts and providing clear guidance, advisors can create more “Aha!” moments that showcase their value and solidify client trust.
Advisors must demonstrate expertise, credibility, and a strong commitment to client service to thrive in a constantly changing industry. Adapting and implementing the right technology will help deliver personalized advice and prioritize financial education.
Both are crucial steps in building lasting trust and loyalty, ultimately driving success in the increasingly digital and competitive world of financial services.
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