Technology in Financial Planning Practices | FinTech

Technology is a little bit like the story of goldilocks. Every firm has their own preference in how much technology they’d like to use. Some firms might prefer to be on the cutting edge, constantly examining how they could use more tech to benefit their customers. While others might prefer more paper and hardcopies so they know their data can’t be compromised.

Technology is no longer just a nice-to-have

Whatever you think the role of technology in your practice will be, one thing is for sure, it’s here to stay. For the tech-averse firms out there, the time is coming that you will have to implement more software into your practice to be able to stay competitive. There are too many options and too much information out there that simply can’t be parsed by human minds in an efficient manner. Onboarding new technology to help you with this simply is a must. But that’s not to say that all financial technology is right for you or your clients’ needs. 

Change certainly is difficult, but if a firm wants to have any chance of moving forward and staying competitive in today’s marketplace, the adoption of more, not less technology, is critical.

Know before you adopt


Firms that go “all in” on tech should take heed, however. Advisors that try to stay on the up and up with technology might quickly find themselves isolating clients who are less trusting of our technological world and prefer things a bit old fashioned.

Likewise, certain clients may simply not understand or not care to understand how to use software and computer related financial management systems. Forcing them to adopt something out of their comfort zones may push them to find a different advisor who is more accommodating of their preferences. 

Whatever you view the role of technology in your firm as, there’s no escaping it. The financial planning industry, like every other, is becoming increasingly automated and tech-oriented. You may find yourself adopting more technology than you ever thought you would, or this fundamental shift might be a dream come true. However you view the role of technology in your practice, make sure of one thing: that it benefits the client and helps secure the future they’ve been dreaming of.