Incorporating cutting-edge technology into a business’ value proposition used to be a differentiator. It has become a business norm presently. The world has drastically altered since the virus first appeared, and never more so than now. As customer expectations for seamless service rise, hybrid working is here to stay. The demand for technology and technological people has never been stronger.
Boards of directors are increasingly asking technology leaders to look to the future for solutions to the question, “Where Next?” In light of this, the following list of consulting industry trends for 2022 and beyond.
The first tendency is hybrid advising
Hybrid counselling is the term for help that combines in-person and remote delivery. In fact, there are many different delivery models available, each with a unique set of goals. The client-adviser connection is improved (rather than replaced) by each of these organisations’ modernised strategies that leverage technology.
The expectations of the client are the primary driver. Consumers’ increased use of technology in other areas of their lives is driving them to anticipate quick access to information, process control and visibility, and more on-demand service as the standard. These expectations won’t go away, therefore advisory businesses must adapt or run the danger of becoming obsolete. Simple Zoom meetings and commercial client portals are at one end of the spectrum and allow the advisor and client to communicate virtually. On the other hand, technology has the potential to play a far bigger part in client evaluations, goal-setting, and onboarding than it has in the past, as well as giving clients much greater access to and control over the financial planning process.
The second tendency is toward automation and efficiency
Businesses must establish relationships with younger, potentially unprofitable clients—high-net-worth—if tomorrow’s intergenerational wealth transfer is to be effective. For a long time, consulting firms have struggled to develop a reliable and affordable advice solution for this population. Efficiency and automation are the two pillars of the method.
Back-office technology that is more potent, adaptable, and open will soon be available, enabling businesses of all sizes to automate more, streamline processes, and boost productivity. By utilising out-of-the-box technologies, small businesses may set up a substantially more efficient company model right away. Before further automating and customising their models to fit their operations, larger firms can evaluate their models.
Innovative companies will use cutting-edge technology to automate time-consuming, repetitive tasks. This will enable them to manufacture more affordable, easily customisable goods for a younger audience while also freeing up their staff to concentrate on the client’s needs.
The third trend is data-driven
Data is a valued commodity in the majority of organisations; financial services need to catch up. Businesses understand that data is one of their most valuable assets and that it is necessary to create a successful operational plan. Technology vendors also recognise this potential. Building the basis for a data-driven strategy requires integrating systems, which allows data to move across them. However, businesses must be able to access, analyse, and use their data right away to generate value.
Data accessibility and data visualisation tools are essential for organisations of all sizes to make data-driven choices. Every organisation should use relevant, real-time business intelligence to advance their management data.
The fourth trend is artificial intelligence (AI)
The humanoid J.A.R.V.I.S may accompany you to meetings and provide customer service for the financial services industry, according to artificial intelligence. Even while reality isn’t as futuristic as fiction, it’s nonetheless thrilling. The effects of artificial intelligence are already being felt. Microsoft Teams and programmes like Otter employ artificial intelligence (A.I.) to live-transcribe client conversations. Sentiment analysis will soon be used by M.S. Teams to ascertain how clients feel when speaking with their consultant. This will strengthen and enhance the relationship between the advisor and the customer rather than replace it. Additionally, I witnessed a demonstration of a cash flow planning tool that actively suggests different actions to the adviser or paraplanner when developing a cash flow plan based on knowledge of the client’s present circumstances and future objectives. This tool uses artificial intelligence (or, at the very least, some extremely sophisticated algorithms). It was able to determine the actions the counsel favoured and utilise that information in subsequent situations.
Future possibilities are virtually limitless. For instance, predictive analytics may be used to identify clients who are about to switch to a rival or to identify opportunities for cross-selling other services that the client could find valuable.
Fifth trend is virtual reality
The way that banks train staff, offer services, and manage data is already changing as a result of virtual reality. Virtual reality was utilised by Morningstar to promote an upcoming conference during the epidemic and by Fidelity for virtual employee onboarding. It is clear how it could help new advisers catch up by safely simulating client meetings and other challenging situations.
On the other hand, it’s possible that in the not-too-distant future, virtual reality will be integrated into our everyday financial planning. Giving clients the ability to interact with their financial plans and visualise how different financial decisions will affect them in the future will be very effective, especially for younger people who are a long way from retiring or reaching retirement age. The financial counselling industry needs to grow more quickly. The majority of wealth management companies are still a long way from simulating future investment scenarios with virtual reality goggles, but developing data literacy and logical process now is essential. All organisations ought to at the very least begin automating their business processes and making use of their data. Companies will benefit greatly if they adopt these trends early on or do so first.