In a recent survey by Twenty7tec, 92% of financial advisers and wealth managers reported that clients make decisions without their knowledge when their involvement may have helped.
More than one-third of clients don’t update their financial advisers on material information about changes in financial circumstances with 31% of advisers suggesting the decision to not contact them with an update is because the clients lack understanding of their role and the support they can provide.
The survey of 250 UK financial advisers and wealth managers found at present, advisers use tools for budgeting and expense tracking (37%), retirement planning (36%), and investment tracking (34%) as part of their offering to give the right advice to clients. Only a quarter (27%) provide clients access to portals where clients can access information about their financial circumstances.
But, less than two-thirds of advisers (62%) have faith that the tools available to them enable them to provide the best possible advice. Interestingly, more experienced advisers (5+ years) will have greater faith than their less experienced counterparts (27% v 57%).
Despite one in five experienced wealth managers (5+ years experience) not using AI in their daily work, 53% of those surveyed believe that the best advice in the future will be a combination of AI and adviser.
James Tucker, CEO of Twenty7tec, says: “It’s worrying to see that only 27% of advisers and wealth managers provide clients access to portals where both parties can access up-to-date information about the client’s financial circumstances.
“In a world where everything is so instant, advisers and wealth managers need to find ways to make it easier for clients to instantly view all relevant information about their financial circumstances and for the adviser to receive updates in real-time. By remaining front of mind whenever a client is making a financial decision, they can have a positive impact on all relevant decisions.
“This is where the adoption of AI and technology such as client portals can help. By adapting their strategies and using the tools available to them, advisers can communicate with their clients effectively, boost transparency and improve their relationships.”
