The Fintech White Paper
Mapping Fintech to the Financial Planning Process – why Fintech is not a threat.
The FPA Professionals Congress 2017, launched a major initiative for AFSLs and advisers titled “Mapping Fintech to the Financial Planning Process – Why Fintech is not a threat” which is being generally referenced as “The Fintech White Paper“.
How to Navigate the Fintech Landscape – according to the Fintech White Paper
The Fintech White Paper mentions the explosion of fintech products in the last few years. The current plethora of software solutions is an opportunity as well as a challenge for financial advisers. As an adviser, you will have found that it is virtually a new job role to evaluate which solutions will add value to your enterprise, and they fit together. How do you choose?
A list of researched Fintechs are mentioned in the Fintech White Paper, and are charted regarding how they map to the Advice Process. This is a very helpful starting point for Financial Advisers. In addition to the presentation of the Fintech White Paper, the Fintech Hub at the Congress included a number of Fintech providers, including Financial Mappers. We each gave a short presentation showing how our software could be utilised in the Advice Process.
Our presentation is shown in the video at the bottom of this page. It describes how Financial Mappers can be used throughout the advice process, and how it can boost the client collaboration capabilities of Advisers, which is an important element of adviser service in the brave new world of changing attitudes and requirements by the younger generations, and the advent of roboadvice.
Customer Satisfaction levels of 50% plus the advent of Roboadvice is the real threat.
It is mentioned in the Fintech White Paper that some research referenced in the report “Accenture – The Greater Wealth Transfer”, found that only one out of every 2 clients in the 30-49 age group is satisfied with their primary wealth provider. This report also looked at the mindset and requirements of the Gen X and Millenials, compared to the Baby Boomers, and as an adviser your approach to client service will be enhanced by understanding these differences.
A strong suggestion in the Fintech White Paper is that the challenge to solve for, is creating efficiencies in the advice process. This allows more time for engagement and collaboration with clients. Advisers can then increase their levels of customer satisfaction and differentiate themselves from what roboadvisers cannot do – and treat people like human beings. Increased customer satisfaction means long term clients, increased referrals, and less marketing effort and dollars required to find new clients.
Generation D Clients, Fintech and Collaboration – could this be the answer?
An important client group were referenced in the Fintech White Paper, called “Generation D”. These are tech-savvy investors, and the percentages of them in the (USA) population mentioned were:
Millenials (age 21-30) – 26%
Gen X (age 31-45) – 48%
Baby Boomers (age 46-70) – 25%
(This was from an Accenture Report titled “Generation D – An emerging and important investor segment)
This group of investors VALUE digital financial planning software that offers education, information, and modelling capability. So if we add this to the need to increase customer satisfaction levels, that there are likely to be many clients who will love the opportunity to do things a little differently to how they’ve been done before. These tech-savvy clients will enjoy the opportunity to collaborate with their adviser using appropriate software tools.
And this is of course, where Financial Mappers comes in.
What type of Fintech is Financial Mappers PRO?
Financial Mappers Pro is modelling software designed for both self-directed investors and advisers. It allows the best financial decisions to be made, as calculated outcomes can be compared to the clients’ objectives.
It is an excellent medium for advisers to collaborate with their clients as they develop and refine their investment or retirement management strategies.
Financial Mappers Pro is very responsive to changes in a meeting situation (in their office, on online). The adviser can change inputs and immediately see results. It also allows the client to give further consideration to the advised strategy after the meeting. To do this the adviser shares the Financial Mappers plan with the client. The client makes a copy of the plan which they can adjust. They can then share the results back to their adviser.
An example of an adjustment is that that they increase how much they allocate to investing on a regular basis, which means decreasing some of the personal spending in their budget. This could then allow changes to the amounts invested by their adviser, in their overall plan.
To fully understand how Financial Mappers maps to the advice process watch this video:
Disclaimer: Financial Mappers does not have an Australian Financial Services License, does not offer financial planning advice and does not recommend financial products.