How can tech help you attract newclients?

5 mins readLast updated January 17, 2023by Kate Morgan

Software and technology options now available in the financial advice sector are worlds apart from those available a decade ago, and the pandemic has helped to speed up technological development. Read on and explore how incorporating effective technology into your working practices in 2022 can help you to attract new clients in the short term and the long term.

Why should financial advisors be utilizing new technology?

If you’re a financial advisor with your finger on the pulse of the industry, you already know nothing stays the same for long.

Effective use of technology and automation of busywork frees up time for advisors to do the more important aspects of their jobs.

Plus, it’s increasingly expected that advisors will have a good grasp on technology for the benefit of their clients, from video conferencing to social media comms.

A flexible, techno-centric approach will only be beneficial — especially where your younger clients are concerned.  

It’s more important than ever for advisors to embrace technology if they want to convert and retain new leads.

Plus, if you can happily join the technological revolution, you’ll be able to run your business more efficiently and waste less precious working time through automation. 

Keeping up with the competition

Any financial advice company that doesn’t invest in technology-focused strategies in 2022 will likely fall behind.

It’s estimated that four per cent of general financial advice revenue is spent on technology, and many larger firms report spending of at least $5 million per year in this area.  

Though there may be stressful and time-consuming changes involved, upgrading your firm’s technological abilities will help you better adapt to clients’ constantly varying needs in the long term.

This is especially essential when you consider that an inability to meet client needs will reduce your retention rate and damage your business.  

Client demographic change is already happening, and this is the perfect time to catch up.

Millennial investors will receive tens of trillions of dollars from their relatives over the next few decades, and much of the way they work revolves around technology.

If your business isn’t contactable via a video conferencing platform like Zoom and doesn’t have a stand-out, easily navigable website, you’ll lose out to competitors who are getting these simple switches right.  

In February 2021, 89 per cent of surveyed financial advisors in the US expressed that they had become dependent on technology and expected this change to be permanent.

It’s clear that technology is working well for firms and their clients, and it can work just as well for your financial advice business.   

four per cent of general financial advice revenue is spent on technology

Four effective ways to attract clients using new technology

The increasing role of technology in financial advice businesses and the transformative impact of the pandemic have led to many advisors adopting a hybrid model of working.

They still engage with their customers as deeply and efficiently as before, but they now do so partly from home in a way that’s more accessible for clients from a wide range of backgrounds and locations.  

The traditional methods of outreach and portfolio analysis are now outdated as far as many clients are concerned.

They’re less likely to give positive referrals if firms don’t have the technology they’re after, which means you’re less likely to retain leads.

So, what technology is necessary to make your business stand out? And how can you use it to appeal to new, younger and more savvy clients?  

1. High-quality video conferencing technology Since COVID-19, many clients are less amenable to traveling to discuss financial matters with advisors, as it’s just as easy for them to do so via Zoom, Google Meet or Teams. By adjusting your services to make them easily translated via video technology, you can assure customers that you’re still delivering accurate, tangible and relevant investments.  

2. Investment in social media automation tools Even the most technophobic advisors now understand the importance of being visible on social media. With younger investors drawing so much influence from Facebook, Twitter and Instagram, having a presence on those platforms is imperative. New automation tools have made updating profiles and scheduling bulletins easy, and 97 per cent of advisors agree that AI will help their business grow.  

3. An intelligent CRM platform Every functioning financial advice firm needs a great CRM system. With aspects of business becoming increasingly digital, using new CRM platform technology to contact, target and retain leads is essential. It’s a far more efficient way of reaching a client when necessary, and it means that you can quickly update them about the progress of their investments and the state of their portfolio. 

4. Electronic signature technologyDue to social distancing measures, getting wet signatures during the pandemic was hard. But once again, technology stepped up. Now, electronic signatures can be arranged with incredible ease. This is a sure-fire, easy way to increase efficiency, reduce time spent waiting for signatures and keep pace with competitors (some of whom may have been doing this for years already).  

If you want your business to stay relevant to as many customers as possible, then tech is the future.

Ultimately, there is so much choice on the technological side of things in 2022 that it’s easy to choose a bundle of tech that genuinely works for your business, now and in the future.

Try things out. Sample automation and software options. With time and research, you can find the technology-friendly strategy that best suits your needs.  

Content writer

Kate Morgan

Kate has written for leading publications and blue chip companies over the last 20 years.