A FINANCIAL MANAGEMENT How Financial Advisors SHOULD BE THINKING ABOUT TECH IN 2024 BY NICK GRAHAM, CAMBRIDGE INVESTMENT RESEARCH INC. As artificial intelligence, big data and automation expand their reach across finance, many financial institutions and their advisors continue grappling with how to integrate emerging technologies into their service offerings, not only within investment services but throughout the financial institution. With new innovations arriving rapidly, some still view technology as more of a distraction than an advantage. However, by embracing it strategically, institutions and their advisors can utilize technology to deliver greater value in 2024 and strengthen client relationships for the long term. Deploy Tools That Augment (Not Replace) Human Insights A common advisor fear is that technology will make their role obsolete. In reality, responsible technology implementation will augment advisors’ skills rather than replace them. AI-powered analytics, for instance, can process vast data sets fast, but advisors add context and counsel based on holistic client knowledge. The key is determining where these tools bring unique strengths to complement advisors’ irreplaceable human capabilities. View solutions as collaborators, not competitors. Today’s investors, especially younger generations, expect technologically enabled experiences. Advisors should evaluate new tools based on how seamlessly they integrate into their processes and enhance client outcomes. Whether improving portfolio views, automating menial tasks or enabling 24/7 access, technology successes ultimately hinge on enhancing, not just advancing, the client experience. Focus on Personalization at Scale Top advisors pride themselves on highly personalized services. Yet manual customization grows challenging as client rosters expand. This is where AI-powered customization engines can help advisors “mass-personalize” by quickly tailoring portfolios, communications and recommendations to individual investors based on data insights. The technology handles the heavy lifting while advisors provide the personal touch. Especially after the pandemic, virtual advisory models are proving more common and are effective at democratizing financial advice. Digital platforms expand advisors’ reach to serve less affluent clients online. Automated risk-profiling and portfolio rebalancing also allow efficiently delivering robust services to broader audiences. Deploying technology in an inclusive manner presents new growth opportunities and helps to humanize the experience. Responsible technology implementation will augment advisors’ skills rather than replace them. “ 50 HOOSIERBANKER
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