The New Normal: Digitalization of Financial Advisory
The financial advisory industry is changing. Before this time, financial advisors were expected to have a physical office, go to networking conferences, and drive countless hours to meet clients or prospective customers. Nonetheless, all these are changing as digital disruption is sweeping through many industries, the financial advisory sector included.
A Paradigm Shift
Since the beginning of the 21st century, the human race has witnessed massive changes in the environment and the way we live our lives. These changes are perpetuated by the exponential advancement of technology, which in turn, impacts human behavior worldwide.
In the last 20 years, consumer behavior, expectations, and preferences have changed drastically. Going by the diverse range of digital solutions available to us, consumers naturally expect financial institutions to take advantage of digital platforms in delivering products, financial advice, investment, and insurance.
A 2019 report by McKinsey and Company clearly showed that more customers prefer virtual advice over the obsolete advising methods deployed in the 90s’.
COVID-19 & Digitalization of Financial Advice
The COVID 19 pandemic, without doubt, disrupted a lot in our world. While we still expect some things to return to normal, other things are here to stay with us as the new normal – for instance, the disruption to the financial advice sector.
Many people were forced to work from home due to the 2020 lockdown. Given the circumstances of the restriction, there were a lot of financial decisions to make amidst the scarcity of resources. While many were able to receive the services of financial advisors, the way and manner it got delivered to them changed.
One takeaway from our 2020 reality is that virtual advice powered by digital platforms can work. With the right infrastructure and tools, both consumers and advisors stand to gain. Virtual advice not only saves clients time but also reduces advisors’ operational expenses. For instance, advisors can spend the funds used in renting and maintaining expensive offices on investment in digital infrastructure to reach more people globally.
The Count Down Has Begun
Digitalization has changed the way we do business in today’s world. Millions of people around the globe are quickly embracing virtual work mediums, and it is crystal clear that the future of financial advisory is virtual. A countdown has begun – financial advisors of tomorrow will need to go digital or risk becoming obsolete.
More inFinancial Adviser
-
Why Is It Important to Reconcile Your Bank Statements? The Ultimate Guide
Why is it important to reconcile your bank statements? Many business owners view bank statement reconciliation as a tedious task. However,...
May 12, 2024 -
Unlock Free Trips By Paying Mortgage & Loans with Credit Cards
Making large payments wouldn’t have been easier if it weren’t for credit cards. The system ensures full safety and quick transfer....
May 2, 2024 -
Skimpflation: Is Luxury Losing Its Luster?
In the glamorous world of luxury, a quiet revolution is underway, and it goes by the name of ‘skimpflation.’ Imagine your...
April 26, 2024 -
Is WinCo Cheaper Than Walmart? A Detailed Comparison
When you think of grocery shopping on a budget, Walmart probably comes to mind as a go-to destination. But have you...
April 23, 2024 -
Is John McCook retiring? Actor Opens up About Future Plans
When a bombshell diagnosis rocked “The Bold and the Beautiful” (B&B) and landed on Eric Forrester, played by the iconic John...
April 16, 2024 -
Is NYC Right for You? The Pros and Cons of Living in New York
While the vibrant culture, diverse neighborhoods, and endless opportunities of New York City (NYC) ignite a spark in many, the Big...
April 9, 2024 -
Travel Essentials – What You Need for Your Trip
Traveling can be fun and exciting, but it’s important to have the right travel essentials with you to make your trip...
April 1, 2024 -
5 Easy Methods for Sam’s Club Credit Card Payment
Managing your finances doesn’t have to be a chore—it can be an effortless part of your routine. One key aspect of...
March 26, 2024 -
What are the Top 5 Most Popular Fast Food Tacos?
Tacos are a simple concoction of meat, vegetables, and sauce cradled in a soft or crispy shell – a delicacy that...
March 20, 2024
You must be logged in to post a comment Login