As an independent financial professional in today’s fast-paced, digital-centric environment, it’s crucial to leverage the power of technology to stay competitive. If you’re still questioning, “Why is technology an important resource for my practice?” this blog will provide insights into how financial technology, or “FinTech”, can help your practice become more efficient and effective. 

It’s about more than just keeping pace in an increasingly digital world. It’s about staying ahead, being innovative, and continuously evolving your practice to meet your clients’ ever-changing needs and expectations. That’s why harnessing the power of FinTech advancements is not just an alternative; it’s a necessity in the modern financial advisory landscape.

In this blog, we’ll cover the following topics:

  • Why is FinTech an Important Resource for Independent Financial Professionals?
  • How Have Investment Products and FinTech Evolved Together?
  • What Are Examples of Data-Driven Marketing Tools?
  • What Are the Top Benefits When Partnering With an OSJ to Obtain Access to State-of-the-art FinTech Solutions?

Considering Collaborating with an OSJ? Read our latest Quick Guide: “How to Select the Right OSJ for Your Practice.”

Why is FinTech an Important Resource for Independent Financial Professionals?

FinTech has become an indispensable tool for independent financial professionals. It’s a catalyst for driving productivity, simplifying complex processes, and enabling new business practices. This makes technology an invaluable resource for independent financial professionals for several important reasons:

  1. Efficiency and Productivity
  2. Data Analysis and Reporting
  3. Better Decision-Making
  4. Risk Management Services
  5. Compliance Monitoring and Reporting
  6. Client Services
  7. Quick Access to Important Information
  8. Cost Reduction
  9. Scalability

FinTech is a strategic asset that creates a competitive advantage for independent financial professionals in an increasingly competitive financial services industry.

How Have Investment Products and FinTech Evolved?

In the past, investment products were relatively straightforward. They consisted primarily of individual securities, portfolios,  and mutual funds. However, the digitization of the finance industry has ushered in a whole new era of investment products that provide more diversity, flexibility, and sophistication.

For example, integrating FinTech into these investment strategies has made it easier for independent financial professionals to manage many more complex portfolios. Robo-advisors, algorithmic trading systems, and automated risk assessment platforms make portfolio management more efficient while facilitating a more tailored approach to individual clients’ needs.

Data-Driven Marketing Tools

Independent financial professionals increasingly use FinTech data-driven marketing platforms to enhance business operations. These platforms offer a range of features that help streamline your practice, improve client interactions, and boost overall results. Here are a few ways you can use these platforms:

  1. Automated Marketing: FinTech data-driven marketing platforms often come with automated features. These can send regular email newsletters, schedule social media posts, or even automate follow-ups with potential leads. This can save considerable amounts of time that can be devoted to other key planning and investment activities.                                                                         
  1. Client Segmentation: With the vast amount of data available, these platforms can offer valuable insights into clients’ behavior, preferences, and needs. Financial professionals can personalize their clients’ actions and deliver more targeted services based on these factors.
  1. Predictive Analytics: Advanced data analytics can help financial professionals anticipate market trends, evaluate investment opportunities, and predict customer behavior. This can lead to more informed decision-making and produce better outcomes for their clients.
  1. Customer Relationship Management (CRM): CRM platforms allow you to keep track of all client interactions, maintaining a comprehensive record of each client’s financial goals, portfolio holdings, communication history, etc. This enables financial professionals to provide more personalized service and better understand their clients’ needs.
  1. Performance Tracking: Data-driven platforms offer robust tools for tracking marketing campaigns’ performance. They can monitor various metrics like click-through rates, engagement rates, conversion rates, etc. This helps in assessing what strategies work best and making data-backed adjustments.
  1. Compliance Management: Many platforms assist with the automation of compliance management:
    1. Archiving of communications, such as emails
    2. Active monitoring of transactions for suspicious activities
    3. Industry regulation compliance tracking                                                                                                                     
  2. Client Engagement: Financial professionals can present complex financial information in a simplified, understandable format through interactive dashboards. This helps engage clients in their financial planning and investment processes while promoting transparency and trust.
  1. Lead Generation and Conversion: Data-driven marketing platforms often have AI-driven tools for scoring and nurturing, helping financial professionals identify high-potential leads and convert them into active prospects and clients.

By embracing FinTech data-driven marketing platforms, independent financial professionals can automate routine tasks, gain deeper insights into their client’s needs, and make data-driven decisions to boost their practice’s efficiency and effectiveness.

It’s about more than just keeping pace in an increasingly digital world. It’s about staying ahead, being innovative, and continuously evolving financial advisory practices to meet your client’s ever-changing needs and expectations. That’s why harnessing the power of FinTech advancements is not just a recommendation; it’s a necessity in the modern financial landscape.

What Are the Top Benefits When Partnering with an OSJ to Obtain State-of-the-art FinTech Solutions?

With the proliferation of FinTech platforms, the role of an OSJ becomes even more critical to independent financial professionals as OSJs help professionals navigate, integrate, and optimize the use of FinTech technology platforms. 

Here’s how an OSJ can assist independent financial professionals with various FinTech platforms:

  1. Compliance Management: With the rise of digital financial services, maintaining compliance has become more complex. An OSJ can help professionals understand regulatory standards and apply them in the context of FinTech. They can provide oversight to ensure professionals are compliant using these platforms while also helping maintain records and secure data.
  1. Training and Support: OSJs can provide training to independent financial professionals using various FinTech platforms. They can help them understand the features and capabilities of these tools and guide them in using technology to advance their business processes.
  1. Integration of Technology: With numerous FinTech solutions available, it can be a challenge to integrate the best platforms into cohesive, integrated systems. OSJs can assist in integrating various tools and technologies, ensuring seamless data flow and improved operational efficiency.
  1. Risk Management: When FinTech platforms handle sensitive financial data, it’s crucial to manage risks related to cybersecurity, data privacy, and fraud. An OSJ can play a role in establishing risk management practices and providing guidance on handling potential risks associated with increasingly sophisticated FinTech systems.
  1. Vendor Due Diligence: Before a financial professional decides to use a FinTech product, it’s critical to assess the credibility and reliability of the vendor. An OSJ can conduct due diligence by evaluating the platform’s stability, reliability, and compliance readiness.
  1. Strategic Guidance: An OSJ can provide strategic guidance to independent financial professionals beyond immediate technical and compliance issues. They can help professionals understand how to strategically use FinTech to achieve business objectives, compete in the market, and provide superior services to their clients.
  1. Enhancing Client Experience: FinTech platforms provide tools for improving client engagement and experience. An OSJ can assist financial professionals in leveraging these features to maximize potential while improving client satisfaction and retention.

About Evolution Financial Advisors:  Our OSJ delivers a broad spectrum of FinTech solutions to independent financial professionals in Western New York State and across the U.S. As a comprehensive OSJ, we provide flexibility allowing you to choose the services that best promote your practice’s growth. We’d like to speak with you if you’re contemplating a partnership with an OSJ.

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Chris Virgil

More about the author: Chris Virgil

Chris is the assistant vice president at Evolution Financial Advisors. He works to help advisors grow their businesses and gain a sense of freedom. Chris is a business and behavioral coach working with existing EFA financial professionals to create a more fulfilling practice, streamline operations, and enhance client experience.