Technology is playing a prominent role in reshaping the investing landscape to be more accessible and inclusive than ever before. In addition to increasing productivity and innovation, technology has advanced inclusivity, allowing firms to reach new segments and giving clients the accessibility needed to make informed investment decisions.
With more investors wanting to get involved, and firms needing to keep up, tech innovations are creating better wealth management solutions at a lower cost. Beyond that, technology has strengthened the industry’s ability to assist investors with all kinds of different needs. Let's dive deeper into four ways technology contributes to the industry’s growth and creates investing inclusivity.
1. Democratizing Access to Investing Opportunities
Technology has played a massive role in making investing opportunities available to a wider segment of consumers. Traditionally to many, investing was seen as reserved for high-net-worth (HNW) individuals due to fees, investment thresholds, and access to financial advice. However, recent advancements and strategic partnerships between institutions, financial service providers, and fintechs have democratized access to investment opportunities, allowing firms to target and cater to mass affluent investors who were previously underserved.
With more admin work taken care of by digital platforms, advisors can focus on offering products and services to a more extensive range of investors, allowing them to take on more than just HNW and UHNW segments. This inclusivity not only fosters greater participation in wealth creation and financial markets but shows how there’s a place in investing for everyone when technology can be used to open doors.
2. Merging Traditional and Digital Strategies with Hybrid Service Models
Hybrid service models combine the best of automated technology with human expertise to deliver comprehensive wealth management solutions for investors. Automation and software systems can be used to help handle tasks such as onboarding, portfolio rebalancing, and performance tracking, while human advisors provide personalized advice and support.
This combination optimizes operational efficiencies and relationship building for financial institutions, allowing them to allocate resources more effectively towards client engagement and services. It also helps investors who are not able to use only advisors, or only robo-advisors. For example, if the investor has a complex financial situation that needs the expertise of a human advisor, or if the investor wants to use a robo-advisor because they areunder cost constraints that would make it challenging to use other services.
Another benefit of hybrid service models is their ability to offer a unique approach to wealth management. They provide access to personalized advice and tailored investment strategies not only through the personal assistance of the advisor but the configurable features of the platforms they use, which help enhance productivity and align with financial goals.
Overall, hybrid ensures a holistic approach to managing wealth, addressing the complex needs and preferences of investors who are looking for more effective but individualized services that were harder to find before.
3. Improved Accessibility to Data with Integrated Platforms
Integrated platforms represent a significant step forward in inclusive investing. These platforms integrate a wide range of functionalities, including customizable dashboard options, real-time market insights, and more. They provide investors with a unified interface to manage their financial portfolios efficiently and make informed decisions based on comprehensive data and analytics.
As well, these platforms prioritize accessibility across several investment products by uniting financial data, reporting processes, and wealth management tools into one platform. This prevents having to switch between multiple systems to try to monitor portfolio progress and access information. Doing so has allowed firms and advisors to empower investors to rethink their investment strategies and achieve long-term financial objectives effectively without the need for excess coding and lengthy implementation times.
4. Personalizing Client Support and Engagement
Another key component of inclusive investing is the ability to personalize client support and engagement. As mentioned earlier, investors come from many different backgrounds and will need to be assisted based on expectations and needs.
In wealth management, the rise of customizable platforms has allowed investor experiences to be tailored to accommodate varying levels of financial literacy, risks, and investment objectives, ensuring that investors receive relevant information and support. By integrating technology with personalization, financial institutions foster long-term relationships built on trust, transparency, and mutual success.
By using tech to help expand to larger segments, firms and advisors can help more consumers participate in wealth management with greater accessibility at a faster speed. This will continue to grow as technology evolves to create new ways of providing inclusive services that encourage democratization.
For individuals who want to grow and expand their wealth, we can expect to see a broader range of investment options becoming available, with advisors willing to use technology to provide the best assistance and connect with clients on a deeper level.
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