Understanding the new era of client relationships
- To understand what is driving the trends in robo-advice.
- To grasp how it can be used with investments such as ETFs.
- To gain an understanding of how robo-advice recommendations still need to be in tandem with the human touch.
- To understand what is driving the trends in robo-advice.
- To grasp how it can be used with investments such as ETFs.
- To gain an understanding of how robo-advice recommendations still need to be in tandem with the human touch.
Latest internal data shows 78 per cent of the recommendations made by our clients are directly influenced by our platform. But we also cook with our own sauce.
We have built this tech into our own strategies, so the technology-driven data has become a core part of all our adviser-client relationships, and for financial advisers using the platform and their clients.
It is important to note two things from any machine-generated recommendation. Firstly, recommendations gleaned from an engine are always recommendations, not an antidote.
Secondly, these recommendations are not a threat to the client relationship. Such recommendations are purely notional data and perceptions, which must always be managed carefully both as tools and as a partner within portfolio decisions.
These observations, however, would not be actionable for clients if portfolio managers and financial advisers could not fully see the context.The end goal is to empower financial advisers through technology to carry out their fiduciary responsibility of building and protecting investments for investors.
Technology can remove the emotion out of the equation, addressing concerns, and honing strategies to fit their clients' goals.
And for the end investor, using tech platforms can help to cut through all the noise in today’s investment climate.
Because clients simply expect you to be smarter, have more rules-based considerations for their tolerances and thresholds, and find yield even when the doom and gloom of the day’s headlines might persuade many to liquidate and convert their mattresses into vaults.
This new era of adviser-relationships will be defined by how we move forward as an investment community.
It will be defined as how we can become more human than human through innovation, without sacrificing the kitchen-counter conversations that create rapport and engender trust, and how technology informs those conversations both in the present and over time.
Jay Gragnani is executive vice-president for Dorsey, Wright & Associates, a Nasdaq Company
