“As digital technology automates more aspects of financial transactions, the role of the advisor and broker needs to change too,” says Rick Hyde, founder and CEO of Ticoon Technology. “For younger millennial clients, this could not be truer.”
Often less experienced with insurance and other personal finance matters, the millennial needs an advisor to provide basic financial guidance, be responsive to questions, and offer quick and immediate attention via digital communications, while providing full transparency with respect to access to information and fees.
“The advisor of the future will take advantage of the new trend of the family office which allows them to get to know their clients more intimately,” Hyde told LHP, “gather knowledge of the family preferences and values, and create and deliver an insurance strategy based on a complete, 360-degree view of the client.”
For older affluent clients, advisors will deliver a higher level of personal service – even taking on the role of ‘financial concierge’, whereby the advisor gathers a complete case study of the client, systematically reviews the client’s exposure to a wide array of risks and delivers comprehensive and customized insurance protection.
“Advisors who take a team approach surrounding themselves with multiple professionals specializing in investment, wealth or debt management, will ensure the client gets the best-suited products and services,” says Hyde. “The future advisor will form strategic partnerships with lawyers, accountants, benefits consultants, actuaries, real estate professionals and other business professionals.”
Through technology, Hyde predicts that advisors will provide clients with a single point of access to all products and services.
This includes offering full-serve and self-serve products and solutions – based on the customer’s preference.
“Personal finance advice is becoming less and less exclusive to the industry,” he says. “Clients often check with friends on Facebook or followers on Twitter, trusting their advice,” says Hyde. “The successful advisor will fully embrace social media, moving away from traditional marketing materials like brochures and sales pitches. Advisors will engage clients with quality content – and lots of it.”
The successful advisor of the future will be a whole new breed, says the CEO of one of North America’s leading financial technology firms, with technology advancements, a stricter regulatory environment and a savvier consumer forcing brokers to adapt their business practices – fast.