More Money, More (Client) Problems?


Do you know the famous chorus?

“I don’t know what they want from me. It’s like the more money we come across the more problems we see.”

It’s unusual to look toward iconic rap songs for wisdom in the financial advice world, but is it true? Does more money, or assets under management, lead to more problems managing clients?

Client issues ranks as a top challenge for financial advisors, and as AUM increases so does the difficulty in managing positive client relationships.

Your time is a finite resource – there’s only so much you can do in a day. Add that to growing wealth in the US and a stagnant advisor population, and we are faced with a real issue.

How do we effectively manage client relationships as the client base grows?

A practical way to better manage the client relationship is by prioritizing your time to provide to deliver a more customized service experience to each client. There’s no better way to do that than leverage technology.

Robo technology is here. We no longer have to wonder if it will impact our industry.

But that’s not bad news. As robo technology becomes more available, it presents unique opportunities for advisors willing to step out and embrace the benefits to clients.

How can robo technology help maximize your effectiveness?

The first thing advisors need to realize is that emerging investors welcome a digital-first investment relationship. More than 85% of high-net-worth investors under the age of 30 are willing to use automated advisory services1. These investors not only expect more control over their investment process, they increasingly demand it.

Robo technology gives advisors – especially those facing hard time constraints, limiting the number of clients served and quality of service provided - the ability to effectively serve a larger and more diverse investor base.

How do you implement robo practically?

The key to implementing and using robo technology effectively (in a way that not only reduces workload, but strengthens the client experience) revolves around finding a solution that fits your unique business goals.

A few things to consider:

1) Private label your technology. Delivering your brand consistently in robo technology is key to ensure your value isn’t diminished.

2) Communicate your investment philosophy. Just because the investing is automated doesn’t mean your unique strategies shouldn’t be translated to the investor.

3) Use a hybrid approach. Educate the investor to help them understand the relationship between robo technology and your core services.

4) Think long-term. Robo is great at getting investors in the door, but how will they graduate to a full-service client? Implement a transition plan, linking your robo technology and core advisory services.

5) Validate your value with transparency. It’s equally important to show your process and investment strategy through clear reporting and communication.

6) Find a robo that fits your business. Like the investment advice you provide clients, one size doesn’t fit all with robo technology. Above all, make sure the robo you implement aligns with the goals and needs of your business and clients.

Adding robo technology to your core investment services helps you deliver a more customized investment experience to a wider range of clients.

It also gives you an opportunity to automate the trivial process in the investment process. You can streamline the account opening and management process, and remove the barriers to basic back office functions – such as reporting. This is not where your value is found. By reducing time spent on routine back office tasks you create increased opportunity to deepen client relationships or prospect for new clients.

“It’s like the more money we come across the more problems we see” no longer applies. Are you ready to grow?

 Learn to implement robo technology in your business with a free advisors gudie. Download now.

1Capgemini and RBC Wealth Management Global HNW Insights Survey, 2015