New ways of working including increased reliance on technology will be the new normal for advisory firms
The investment and financial advisory world will likely, as with many other industries, never be quite the same again.
While this year has proven the old adage that necessity is the mother of invention, it has also highlighted some technology -driven innovations and efficiency savings that advisory firms can make for the long term.
The increasing role that technology would play in financial services in 2020 was already evident before the pandemic.
Despite clients consistently acknowledging the value of the relationship they have with their advisors, there is little expectation that technophobes will soon be relieved of their worst nightmare.
According to a new survey of independent advisors by Schwab Advisor Services, the pandemic has reduced the need for offices (56% said so) and around half expect an increase in staff working remotely – despite some risks - and expect greater use of video conferencing between clients and advisors.
While firms adapted quickly to the demands of the lockdowns without a choice, the fact that the changes have not significantly damaged their service levels means a return to the old way of working, something we craved only a few months ago, is now less desirable.
“Over the summer, we saw a mindset shift as advisors recognized the new possibilities that come with the virtual and digitally-enabled business model, and now they are thinking ahead to how this will shape the long-term trajectory of their firms,” said Lisa Salvi, vice president, Business Consulting & Education at Schwab Advisor Services.
The firm found that financial advisors in the US are optimistic and most expect organic growth in their business in 2021 from both new and existing clients.
