Issue link: https://resources.envestnet.com/i/1527630
FOR ADVISOR USE ONLY. NOT FOR PUBLIC DISTRIBUTION. 7 Digitization and technology Competing against larger players in the RIA space by expanding services and offering a more personalized experience may seem impossible to overworked advisors, but technology can be the great enabler. By leveraging the right technology, individual advisors can scale their businesses and serve more clients, more efficiently. A number of recent studies have provided evidence that firms that embrace technology experience stronger growth and more assets under management 15,16 . By using technology to save time in areas like account maintenance, money movement, trading, portfolio rebalancing, financial planning, and customer onboarding, digitally empowered advisors can focus on deepening client relationships and growing their business. Milestone developments in technology—like robotics and AI, are the engine that allows firms to reduce administrative work and remain profitable in an era of lower fees. 17 With AI and machine learning, RIAs are also able to recognize patterns, anticipate future events, and uncover and share valuable insights with clients. Growing vs. scaling up. What's the difference? Growth is when a firm adds new resources at any cost and revenue increases as a result. Scaling is when firms increase revenue while minimizing costs and resources. Takeaway By identifying and understanding customer needs and financial health through AI-generated insights, advisors are able to deliver relevant product and service recommendations and provide the personalized experiences today's clients expect and deserve. Tech-forward wealth management firms report stronger growth, better client experience, and higher advisor satisfaction. 18 Fidelity Study – Best Practices in Wealth Management Technology