If some of your finical advisories know what are your requirements even before you call them, it might be possible that this financial advisory might be using software to completely portray your financial situations. Financial technology or fintech for short has increased the competition in the advisory business by using automated platforms. But they still have found that advisories are looking towards the digital advances that can complement their ability to serve several of the clients both by freeing up their time and also looking towards assisting the clients in running their complete business more efficiently.  Having a technology that completely automates the process makes the complete advisory part much more simple according to the Lisa Casciaro, a certified financial planner based in Sparta, New Jersey, and president of the state’s Financial Planning Association chapter. It has not only been good for the consumers but even for the advisories that are looking for serving more consumers across the complete financial world. It has resulted in making the advisories become more affluent not only with clients that are rich but also with consumers that want financial independence. Technology has reduced the time required for making decisions with fintech we have easily automated the financial services for various business. Many advisories that had to go through long length of financial calculation and matching them to required plans have almost been eliminated from the business. For Advisors, it means that tasks such as portfolio rebalancing and data aggregation depend completely on the software and particularly having a tab on the client’s different requirements will be done by the digitized systems. The result is less time being spent on crunching numbers, entering data, and more towards pouring those numbers on the spreadsheets. LaKhaun McKinley, Owner of MNM Vested in Grand Rapids, Michigan, added that there is more time to discuss work-life balance, health, kids along with other individual projects that may include business and new house. At the time when so much financial advice is available online advisories will assist the clients in understanding that financial planning goes beyond their retirement accounts and that can be a helpful partner and resource for more than just investment advice.

The recent survey conducted by Schwab Advisory Services for all the independent advisory firms concluded that 58 percent plan to invest in the new technology, top reasons include wanting to serve more clients for 38 percent, reducing manual work for 20 percent, letting employees focus on the high-value work shows 17 percent and improving security 11 percent advisories. While the amount of money that is being spent, financial tech is hard to clarify or even quantify. The teams of venture capitalists and other investors have seen the complete setup and view the entire fintech universe that is promising for the complete market. In 2018, $16.6 billion flowed into the U.S. fintech firms were up by 46 percent from $11.3 billion in 2017, according to Accenture, Global Consulting firm. Including the investment in other countries during 2018, the total amount has been calculated to reach $55.3 billion more than double the earlier included $27.4 billion that was recorded earlier in the year. These investments could be going towards a variety of fintech solutions, ranging from mobile payment app for consumers to other back-office automation for banks and advisors. Robo advisors are another technology that can be used as the fintech tool to grow; they tend to offer cheaper options. They come with complete fees that can be used from a range of being free to about 0.75 percent depending on the account value and services provided compared with traditional advisors that charge up to 1 percent. David Zavarellie, Financial advisor with LPL financial in Danbury, Connecticut added that having a fee comparison can be a bigger challenge for the business but having proper use of these tools means that we are getting more time to understand the clients that can even justify the fair fees.

 Robo advisors also come with lower minimums that can be used- sometimes even below the $5,000 or less. This has made the investment management once only available for the affluent people will now be available to even people that are currently lacking the sizable account balances. Client money has typically been put into the low-cost exchange-traded funds or even index funds. Some robos offer the basic investment management that will help including automatic portfolio rebalancing, and tax loss harvesting that will include extra like financial planning software for investors and even some of the services can be combined with a human advisor via the phone. According to the Senior Analyst at Forrester Research in Cambridge, Massachusetts added that despite all the competition, advisors do remain the key part when it comes to getting the financial services ecosystem. Advisors have added that while the comprehensive planning has always been included in such aspects such as financial planning, cash flow, and even the retirement planning there will now be more to dig in the areas deeper, while it makes easier for the fintech. For the financial advisories, one of the key pieces of information will be shared through the client relationship management CRM system that serves as the hub for the advisors to complete acknowledge the daily workflow.


Having complete information stored digitally would mean that firms should be investing in the cybersecurity. Any data that supports the advisor should be dealt with the highest standard of security to give the investors and financial institutions so that the advisors will be getting the required level of confidence. Fintech is usually at higher priority when dealing with different security issues as they have to meet the highest standards. It’s also possible that fintech firms usually get caught up with implementing and newest options that are required you might easily get wrapped in making the improvements. If you’re investing most of the time trying to set up everything perfectly, acknowledging the need to automate every single thing that will mean that you will be losing the complete benefit of why you had actually brought the software. The technology could be improved with various integration technologies as more and more software technology is being utilized by the business.

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