Digital solutions are being adopted by industries around the world, including the financial advice industry. However, those who have not yet implemented a process for digital financial advice may wonder why they bothered to do so when their current process works so well. The time and effort required to set up a digital advice process is often a barrier to implementation, but the benefits to advisors and clients far outweigh the costs of setting it up.
OMNIMax presents 7 reasons why you need a digital advice process.
Convenience is a big advantage of digitization. Online fact-finding and advice statements can be emailed to clients so they can provide or review information at their convenience. In the past, clients had to meet multiple times in person with their advisors. This can be inconvenient for busy or remote clients.
For advisors, the benefits of going digital include: Digitization also allows the advisor to keep all the financial information related to the client and the advice he receives in one place, accessible anytime, anywhere.
Gone are the days when advisors waited for an email to arrive before creating or updating advice. The Digital Advisory Process allows instant sharing and access to information. Multiple parties, such as partners and accountants, can share information. This reduces the need for all parties to meet in person or at the same time.
Even if advisors and clients prefer to meet in person, digital processes can improve efficiency. During the meeting, the advisor can enter the client’s data into the system, and the data is immediately available across various tools, without having to retype it.
Digital processes often include automation as well. By automating some or all of the tasks involved in the advice process, advisors reduce the time and efficiency of manually performing and recording these tasks.
New Zealand Financial Advice Providers (FAPs) to obtain a full FAP license must disclose the reasons for their actions at various stages of the advice process.
A digital advice process simplifies disclosure by recording client electronic sign-offs along with date, time and location information at various stages of the advice process.
- cyber security
Digitization enhances cybersecurity and reduces the risk of fraud and identity theft. Measures like encryption, multi-factor authentication, and regular backups help protect your digital information. These measures make it significantly more difficult for unauthorized parties to access client information.
Advisor labor costs can be reduced by using a digital advice process. For example, an automated advice workflow solution can reduce the time it takes to create an advice statement by up to 80%. This extra time allows advisors to acquire new clients and increase their profits.
The cost of purchasing paper, printing, mailing, and storing documents is also reduced, further increasing profits.
- new customer
Digital solutions are commonly used and expected by the under-40 age group. This age group includes first-time homebuyers and those just starting to get serious about retirement savings. Advisors who need to attract younger customers and ensure business continuity must ensure that they meet the needs of this generation by offering a digital advice process.
Going digital means using less or no paper, reducing the environmental impact of the financial advice process.
Overall, the digital financial advice process is convenient, efficient, secure, green, compliant, and profitable. With these benefits in mind, it’s no surprise that more advisors are choosing a digital approach to financial advice.
ADVICE If you are interested in implementing digital processes in your business, please contact the OMNIMax team. We have over 20 years of his experience helping advisers for digital solutions. Please contact Greg or Jonathan. firstname.lastname@example.org or 03 377 5906.
https://investmentnews.co.nz/sponsor/7-reasons-why-you-need-a-digital-advice-process/?utm_source=rss&utm_medium=rss&utm_campaign=7-reasons-why-you-need-a-digital-advice-process 7 Reasons You Need a Digital Advice Process