As new consumer- and advisor-facing technology proliferates and the financial industry shifts due to regulaltion, individual investors are taking a more active role in financial planning
In a recent white paper, “The Next Wave of Advice Management,” SEI’s authors outline the collaborative, digitally enabled future of financial planning.
Co-planning is becoming more popular as the financial services industry moves from an advisors- and product-focused model into a client-centric world where the client demands advice at a specific scope and tailored to their specific needs, said John Anderson, SEI’s head of practice management.
“Financial planning has moved beyond holistic advice, advisory firms today are offering a wide range of approaches to their clients,” Anderson said. “Advisors can now automate their procedures with technology and repeatable processes and still deliver customized solutions to their clients.”
Yet only 41 percent of financial advisor surveyed by SEI view financial planning as their core value proposition, and one-in-four identified explaining the value of a financial plan as a challenge.
The solution Anderson and SEI present is the “techno-advisor,” a human-digital hybrid that automates and scales while preserving the relationsip between planner and client, but advisors may not know how to implement technology to facilitate financial planning.
529 plans still have a ways to go.