Scared by the rise of artificial intelligence and the robo-advisor? Not the top-earning female financial advisors at Edward Jones. Female financial advisors see disruptive tech as a way to enhance the services they offer clients rather than as a threat to their livelihood, according to a new survey of 107 advisors taken at Edward Jones’ Annual Women’s Conference Feb. 21-22 in St. Louis.
The survey shows financial advisors are increasingly embracing technology to better serve clients and scale their businesses. Only 1 in 10 (11%) of polled financial advisors cited disruptive technologies—which include advances in artificial intelligence and robo-advisors—as the biggest challenge to the financial advisory industry in 2019.
This is despite the substantiated growth in assets under management for robo-advisors which is expected to reach between $2.2 trillion to $3.7 trillion by 2020 according to many analysts.
When asked how they see their practice changing in the next five years, over half (57%) responded that they will offer a broader range of services to fewer clients, while 60% said technology will enable them to have more data and tools available to personalize advice based on their clients’ life goals.
“While new and disruptive technology has put pressure on the financial services industry, it has also enabled financial advisors to better determine appropriate solutions for clients’ increasingly complex needs,” said Katherine Mauzy, Principal of Financial Advisor Talent Acquisition, Edward Jones. “Financial advisors are able to speed up cumbersome and tedious processes while creating a clearer path for more personalized, goals-based planning.”
Financial advisors are using a variety of technological advances to enhance the way they interact with their clients. Two-thirds (66%) of respondents say they now use client relationship management (CRM) software to keep track of leads, prospects and clients. Another 60% also use web-based meeting tools to hold client meetings.
Online resources and social media are have become popular ways for financial advisors to interface with clients. Thirty-eight percent of the female advisors surveyed said they are increasingly using online resources to educate clients on investment offerings and strategies. Another 28% are using social media at work, which can help to attract and retain younger clients.
“As a firm, we are seeing on a daily basis how financial advisors are leveraging new tools to anticipate clients’ current and future needs, making client-centricity a reality,” said Ken Cella, Principal of the Client Strategies Group, Edward Jones. “This client centricity allows advisors to deeply understand the clients they serve and empowers clients to engage on their own terms, enabling both parties to make better decisions and to operate with more ease and speed.”
Constant training and coaching
To keep up with constant changes in technology and client needs, financial advisors benefit from constant training and coaching.
Eight in 10 of the women advisors polled believed that ongoing training and coaching is the most important thing their firm can provide to help financial advisors grow their practice and almost half (43%) say the biggest piece of advice for women looking to find success in the financial services industry is through mentoring and coaching.
Another 42% think that support designed for women financial advisors is essential, while 45% agree that opportunities to grow through leadership skills are important.
According to the World Economic Forum, while 35% of the skills demanded for jobs across industries will change by 2020, at least 1 in 4 workers are already reporting a skills mismatch with regards to the skills demanded by their current jobs. In light of this, enabling and empowering financial advisors to transform and update their skills through tailored training, coaching and leadership opportunities can better prepare them to meet the needs of more demanding clients and ever-evolving technology.
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
