The financial technology (better known as fintech) industry is growing quickly, which is good news for financial advisors. At Skience, we focus on creating solutions that enable advisors to spend less time on administrative tasks and more time on what’s most important: client relationships. As we look ahead at what’s next for the fintech world, we are pleased to see solutions that meet those goals on the rise.
Here are some trends we’re tracking and anticipating for the year ahead:
- Cloud-based applications
The continued rise of Software as a Service (SaaS), or cloud-based applications delivered over the internet, gives wealth managers greater choice and flexibility. The technology is more affordable and requires less installation and hassle, allowing advisors to focus on the client and their journey. Some of these solutions can also automate complex business workflows, like onboarding clients, and integrate multiple applications/platforms. This year, Skience’s client onboarding solution received a patent for automating the creation and maintenance of new accounts while managing related integrations. (Read the press release here.)
- Advisors are looking for ways to clean up their tech stack
Advisors have more choices than ever before in the growing fintech market, and what was cutting edge a few years ago might not work as well today. In 2024, and going forward, we see an increasing priority for advisors to streamline their systems, break down silos, ensure compatibility, and eliminate redundancies. We also see them wanting to optimize the tools they already have, make the most of what is usable, and discard those not adding value.
- Increasing importance of managing big data
We’re in the era of big data, and for advisors, if you’re not managing it, it is probably giving you a headache. Advisors want to get a handle on their client data by getting it cleaned up, in a compatible format, and all in one place. Increasingly, simply having the data isn’t enough. The question becomes: how can advisors use it to inform their practice, make better client recommendations, and save time? Fintech products that help advisors manage data and deliver a personalized experience to each client will stand out.
- As always, data security is paramount
Keeping client data secure is a major priority for financial professionals and wealth managers. As in many industries, it takes continuously added layers of security to satisfy regulations and give peace of mind to advisors and clients. We increasingly see fintech products that can provide innovative, simplified, and secure solutions. Having multiple applications store the same data is an increasing security risk for wealth management firms. We see the industry focusing on eliminating data silos and trying to create a single source of truth.
- Focus on marketing and client communication
At Skience, we believe that a major goal of fintech is freeing up advisor time to focus on clients and other key functions. If advisors aren’t worrying about maintaining their tech systems, they can spend time nurturing existing client relationships and marketing to new customers to build their business. Many fintech systems streamline marketing into other business activities, allowing advisors to stay on the radar of their clients and prospects.
- Advisors want their technology to make their job easier
In the end, advisors want their tech to work as promised; they don’t want to fight with it. This year, we are seeing advisors make continued investments in workflow automation to increase efficiency within their practice. Fintech solutions that offer streamlined, user-friendly solutions that lessen their hassles and don’t require more work from them will win the day. Technology should give more than it takes.
There’s no doubt this is an exciting time for fintech. With generative Artificial Intelligence (AI) just beginning to break through, we’re watching eagerly to see what impact it will have on the fintech industry and day-to-day work functions for advisors. At Skience, we’re proud to be helping to drive the conversation and technology forward.
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