How has technology changed financial advice?
Technology has influenced each and every aspect of our life. The world of finance has been transformed since its inception. Progression in the field of software, communication and mobility have changed the way financial professionals make their moves.
Financial advice has been changed in all ways. Advisors, especially a mortgage broker, perform very differently in the modern world than they used to in the conventional arena. Applications involving automation and artificial intelligence (AI) have impacted the industry in multiple manners.
Here are some ways in which the financial advice area has been considerably influenced by technological developments:
- 1. Automation
Financial services are reshaped through automation. Areas such as financial risk management and regulation have been impacted significantly. Automated programs are available that calculates relevant data which gives better insights into risk exposure and how there have been alterations in that specific area. Certain financial tasks are now completed at a higher pace with better overall quality and results. This has led to more productivity and efficiency. This helps the financial advisors to add more value to other financial sectors.
- 2. Cloud
There is a variety of financial advisors that have accepted this technological product. More professionals are looking forward to hosting their business operations and applications on the cloud. This is a result of more demand for cost effectiveness and a lucid IT infrastructure. Data public cloud is developing at a high rate due to the efforts put in by tech-giants such as Microsoft, Google and Amazon.
- 3. Data security
Financial advisors are and will be holding more sensitive data in future which would increase the need for more online security. Maintaining data security will be one of the top-most priorities of financial firms. Data breaches have led to losing business. Firmer procedures and processes surrounding data security are implemented through technological means. This entails a better assessment of means where data is stored in order to make it more reliable, accessible and secure.
- 4. Customer service
Consumers in this day and age have equal access to information as advisors that can be availed anywhere and anytime. Investors are now less dependent on financial advisors and self-investing is becoming the new trend gradually. This means that advisors now have to add more value to the advice by giving a deeper expert analysis. Since there is a disruption in the field of financial advice and planning through technology, industrial participants need to have a more positive approach towards customer service making it more personalized for the end consumers.
- 5. Robo-advisors
This is one of the most surprising developments in the field of finance. Even though there are less robo-advisors at the moment, it is predicted that they will become more intelligent and adaptive in the future. This will exert more pressure on the roles of conventional advisors and managers, although they will not be completely replaced. More startups are and will in the future embrace this development.
These are some ways in which technological advances have made a significant impact.
