It’s no secret that technology has commoditized many aspects of financial services. Any bank, no matter how big or small, allows its customers to conduct transactions digitally. Most every insurer lets consumers submit claims and track them via a mobile device.
In investment management, algorithms can pick stocks automatically for investors. It’s why the industry has transitioned more to holistic advice and comprehensive financial planning. Advisors are also hoping tech can get both them and their clients through the next bear market. With much doom and gloom predicted in the near future, advisors are hoping that comprehensive financial planning technology will make clients more “sticky” and less likely to pull money out of the market during a downturn. That’s what happened to many during the great recession of 2008-09.
“When the market gets rocky, advisers can point back to the process they took to get [clients] through it and have a more reasoned conversation,” said one person in the advisor technology space, as quoted in InvestmentNews. Let’s see if tech can make investors more inclined to hold on this time around for the long term if another recession occurs.