Robo Advisors and Clients’ Evolving Needs


photo: veer

Today’s clients are evolving. Their needs, no longer met by the traditional advisor-client “pad and paper” meeting, now require a robust, visually pleasing technology that addresses a variety of pain points.

In a culture driven by high-tech, fast-paced answers, today’s clients have come to expect more—for less.

And in many ways, Robo Advisors are rising to meet the challenge by addressing some very specific needs, especially those of people who cannot yet afford a personal financial advisor.

Here’s what Robo Advisors offer to such clients:

Organized Summary of Financials

Today’s clients have become accustomed to multitasking. They’re busy with work, family life, aging parents, etc. As their lives become more complicated, so do their finances.

At times, understanding their complete financial picture requires piecing together information from all their advisors, such as the one managing their 401(k), or another managing a different array of investments. Such a challenge, requiring expert management and coordination, often leaves clients exhausted.

In an era of instant gratification, clients have come to expect easy, comprehensive answers.

Robo Advisors use aggregation technology to present a concise picture of clients’ financial status without redirecting them from the web address. This added convenience helps simplify clients’ finances and makes managing money easier.

Human advisors, however, who use aggregation software like eMoney, can not only present their clients’ finances in a clear, organized picture, but also provide wise counsel about what that picture means in light of those clients’ immediate and long-range financial goals.

Help With Personal Finance

Managing a budget can be harder than it sounds, which might explain why only a third of Americans established and stuck to a budget in 2013.

Robo Advisors can help simplify budgets by tracking a person’s spending and auto-populating categories based on what the client spent for the month. Budgeting options and recommendations, spending information, and account alerts promise help in streamlining clients’ already hectic lives.

As previously noted, however, a skilled financial advisor, especially one who keeps up with ever evolving trends in technology, can offer clients more than budgeting options and recommendations based on data. Sensitive to clients’ history and values, such
an advisor can also provide suggestions tailored to fit personal needs in light of clients’ current situation and future goals.
Enhanced Accessibility

The instant gratification of the internet has conditioned today’s clients to expect information at
any given moment upon request. Their finances are no different.

Web-based Robo technology offers a consolidated view of clients’ financial pictures anywhere, anytime, with access to a suite of tools and information.

This 24/7 accessibility allows clients to tap into a comprehensive history of their money—from home, work, or on-the-go—and forgo scheduling a meeting with an advisor.

But spending time with an advisor can be viewed not as an inconvenience, but as an opportunity. It is a chance to explore current realities and future goals with someone whose judgment in financial matters is based on extensive experience and tested judgment—not on mechanical presentation of programmed data.

Cost Efficiency and Transparency

Today’s clients are constantly on the hunt for the next bargain deal, and Robo Advisors can satisfy that desire by offering a package of tools for one low price.

Clients who use Robo Advisors receive uniform investment recommendations based on risk tolerance and goals, a process which appears to offer more transparency to the client.

With a package of sophisticated analytical tools, Robo Advisors are able to demonstrate their value to the client visually, which helps justify the incurred cost.

Robo Advisors fill a need by providing financial help to those who cannot yet afford an advisor or whose current financial picture makes it less than cost effective for advisors to serve them. The key word to remember, then, is “evolving.” In the fullness of time such people may very well be in a position to take advantage of what a skilled and savvy advisor can provide: insight based on a deep appreciation of that client’s life experience, family situation, personal aspirations, values, and long-term goals.

For the latest industry trends and leading practices, check out eMoney Advisor’s range of helpful resources for professional financial advisors here.