The merger of technology and investor engagement describes ‘The Future of Financial Planning’
According to a new Ephraim Global study titled “The Future of Financial Planning”, the changes and improvements which occur in the financial markets, technologic industries as well as demographics significantly impact the manner in which advisors interact and establish business relationships with their clients. The ever evolving financial services environment influences many aspects of the industry and in turn obliges advisors to change their methods of delivering efficient investment advice to their clients.
“For financial advisors that seek long-term success, the future is now” said Hajime Fujiharu, Chief Operating Officer at Ephraim Global. “The successful financial advisors and specialist of the future will operate in a distinctive manner compared to their present day counterparts in terms of interacting with clients and using technology to their advantage”.
“Financial planning itself is undergoing a paradigm shift which directly affects both advisors as well as the clients whose interests they represent” said Joseph Neidhardt, Senior Development and Strategy Manager at Ephraim Global and one of the principal authors of the study. “Taking into consideration the rapid advancement of technology, this period of transition offers advisors the chance to remain one step ahead of their peers but can also leave some of them dangerously behind and unprepared. It is out of these considerations that we have launched “The Future of Financial Planning” as a means to aid advisors in understanding what areas of interest they should concentrate on in order to achieve the maximum level of success in their future business efforts”.
The seven particular strategies described by the study offer advisors a method of organizing their company’s operations to facilitate development and sustainability, which can be adopted by businesses of all sized and require minimum capital expenses to ensure results.
Additionally the study also identifies some of the key drivers of change within the financial services sector:
Differentiating between Planners and Advisors – Up to 65% of financial specialists name themselves financial planners or wealth managers but only one third of them are actually delivering the services which define their line of work. It is therefore imperative that advisors define their abilities and services appropriately so as not to confuse investors.
Better Financial Planning Instruments – Advancements in technology now allow advisors to communicate information to their clients in a faster and more efficient manner. What used to be accomplished in writing is now done with the help of financial planning software, though according to the study only 26% of advisors use such software to their advantage.
The Role of Robo-Advisors – Considered by some as cost-effective alternatives to human financial advisors the study suggest that future investors will most probably require a combination of robo-advisor strategies along with customized human service in order to achieve satisfactory investment results.
Founded in 2005, Tokyo-based Ephraim Global is an international asset management group serving clients around the world. The company offers a wide range of financial advisory and planning services, bond and mutual funds, diversified asset portfolios, pension plans and account management for private and institutional clients alike, focusing on diversification, extensive research and a risk-aware investment approach.
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