In the last 20 years, the financial services industry has embraced digital products, software, and services at a breakneck pace. From banking to wealth management, everything from apps to email has completely changed the game.
In this blog, we’ll dive into three areas that have been crucially transformed by the digital revolution and why advisors and firms need to keep them in mind with their digital evolution goals going forward.
Privacy, Security, & Compliance are Streamlined with Tech
While this might go without saying in the financial services sector, compliance, security, and privacy are at the heart of the digital revolution. After all, without assuaging client worries about their data or failing to meet SEC and FINRA requirements, there is no possible way to make integrating digital channels a reality.
Despite initial worries that technology adoption would make security, privacy, and compliance more difficult, there are many ways technology can improve transactions and make them more secure for consumers and advisors alike. The financial sector is actually leading out in this area of digital transformation.
AI-driven platforms are increasingly able to monitor fraudulent activity, data privacy is a top priority for wealth management companies, and an entire subset of financial technology called reg tech has emerged to assist advisors with their compliance needs. Indeed, Forrester Research says centering customer journeys on privacy, consent, and security is a key digital experience trend.
In summary, utilizing tools that are fully compliant while also delivering a digital experience is a major value-add for wealth management firms.
Consumer Expectations are Increasingly Digital
If you want to serve your clients well, you have to listen to them. And what are more investors saying these days? “We want a digital experience with the benefit of an in-person advisor.”
The data supports this, with nearly 60% of Americans saying digital financial applications are important for them to achieve their financial goals. Indeed, 70% of bank customers use mobile banking apps, with that number increasing all the time.
The preference toward digital is especially true for the younger generation of investors. Younger investors are looking for a “seamless, integrated, and intelligent” experience with their financial partners. They’re more likely to switch banks, use digital services, and apply digital touchpoints to their financial decision-making.
Investor attitudes toward technology are rapidly shifting, and advisors who meet the shifting expectations will benefit.
Going Digital Cuts Costs & Encourages Talent Retention
Finally, going digital saves money. Whether increasing job retention among advisors or cutting compliance costs, embracing digital transformation just makes financial sense.
Consider this: Almost a third of workers said they have quit a job because their employer’s technology prevented them from doing their job well. In the financial services industry, some advisors spend less than 20% of their time on client meetings because they’re caught up in other activities.
One major benefit of going digital is employing the right tools for your backend operations, streamlining your processes, making day-to-day work less frustrating, and improving client relations because of freed-up time. When advisors don’t have to spend time sorting through paperwork, they can build stronger client relationships and grow the firm.
Just simply going paperless can save your firm $7.75 per electronic disclosure! Over time, that can really add up. Plus, with compliance costs standing at nearly 4% for firms, employing digital tools with benefits like automation, secure storage, and agile integration with other software can reduce the cost of doing business in a major way.
At Docupace, we’re ready to help you make the leap and fully embrace the digital revolution. Our compliant platform integrates with the leading financial software to make sure your digital transformation keeps security and privacy in mind, meets your clients’ expectations, and cuts down costs.
Learn more about us here.
