We draw attention to the chart below, taken from the latest Financial Planning technology survey of financial advisors. The findings are indicative of the ongoing shift in the focus of advisors from tech as a back and middle office solution, to tech as a facilitator of the (increasingly digital) advisor-client relationship.
CRM, Financial Planning and Client Portal are top-used tools
Together, these three areas support the advisor in defining and delivering a richer and more meaningful client experience.
• CRM takes the lead as the core operating system, coordinating, facilitating and informing advisor-client interactions.
• Financial planning software helps determine clients’ needs, set the plan for delivery of the appropriate products and services, monitor and report on results.
• The client portal gives the client a window into their financial condition while enabling an enhanced and ongoing digital interaction between the client and the advisor.
Fundamental shift to client interaction-focused tools
We expect the shift in focus to “front office” technologies to continue.
• CRM systems will be more deeply integrated with key information sources including portfolio management/aggregation systems and, on the client side, financial planning applications.
• Financial planning applications will become more collaborative, including ways to gather and input data over time and more interactive, providing ongoing analysis and reporting on status changes, goal realization and other value-added information.
Client portals will become more user-friendly, offering omni-platform access and more options for two-way advisor-client communications.