Technology has a significant impact on improving our lives. From having a virtual assistant in our back pockets to having the world wide web at our fingertips, technology has made its way into almost every sphere of life. The financial world is no exception to this as more and more organizations are turning to implement modern technology.

Through modern technology, the day-to-day tasks of a financial advisor can be made easier, especially with the use of a Robo-advisor. With the way the world is advancing, we need to understand what a Robo-advisor is and how it can benefit us in the financial services industry.

Robo-advisors are digital financial planning tools that are based on algorithms, which help to inform clients to empower themselves. The investment decision-making process of Robo-advisors is purely based on the information gathered from clients, making decisions hand in hand with the clients long-term goals and preferences.

Robo-advisors offer wealth and portfolio management features of a financial advisors’ business, giving more autonomy and control to clients to gather information about their account. The lower dependency of the client on a financial advisor for account-related inquiries allows financial advisors to concentrate on critical tasks of portfolio management and other important activities like holistic wealth planning and keeping the clients happy.

 Advantages of a Robo-Advisor:

One of the main advantages of using a Robo-advisor is its cost-effectiveness. The wealth management firm having a Robo-advisor platform has to just pay a monthly or yearly subscription fee and does not have to pay a recurring fee for managing the portfolio of each client. The wealth advisors’ fees vary and can depend on a variety of factors, making it several times costlier than a Robo-advisor. An investment in a Robo-advisor makes sense and is very feasible.

Unlike humans, a Robo-advisor is always available for the client, making it an ideal choice for fulfilling the clients’ and wealth management firms’ needs 24/7. Robo-advisors can manage a range of portfolios consisting of different assets. Robo-advisors can help develop diversified portfolios, which can reduce the volatility and risk of the overall portfolio. Millennials more than ever like to have visibility and control over their portfolio and a robo advisor allows them to do this.

 Robo-Advisor Integration

Platforms like AdvisorEngine come pre-integrated with Robo-advisors. Financial advisors can automate tasks like workflow management, performance reports, portfolio construction and more with these all in one digital wealth platforms. With the addition of a robo advisor they become powerful client facing portals.

AdvisorEngine makes it easier for financial advisors to engage with prospective and existing clients while digitally completing paperless client onboarding, goal-based financial planning, and performance reporting tasks, reducing the need for face-to-face interaction between the advisor and clients.

Ways to use modern technology:

The use of modern technology like Robo-advisors and portfolio management platforms can benefit the firm in the following ways:

1- With Robo-advisors and digital platforms like AdvisorEngine, wealth management firms can make quick, paperless, online account opening and boost productivity by making improvements in various processes.

2- It is advisable that wealth management firms invest in a Client Relationship Management (CRM) platform which will help them improve workflow, increase productivity, and create performance reports. In today’s competitive markets, investing in Junxure — a powerful client relationship management platform — can help you fulfill all your client relationship needs, resulting in client satisfaction and retention.

3- Robo-advisor and wealth management platforms can help your firm in maintaining regulatory and risk management standards while managing portfolios.

4- The online secure vault provides access to important documents of your clients with just a click of a button. Documents can be shared with your clients as well with just a few clicks without finding email addresses and sending manual emails, allowing seamless communication with clients.

Conclusion

Automated financial planning is the future of financial advice as it blends modern technology with human intellect, which can create synergy and maximize value for both the firm as well as clients. Robo-advisors are the future, and now is the best time to implement them in your organizations to get the first-mover advantage.