In the advisor-client relationship, the advisor provides advice and the consumer provides compensation for that advice. But advisors can—and should—learn from their clients, particularly when it comes to technology.
The fact is that clients are usually more curious about new technology than their advisors. And one area they’re exploring behind your back is data aggregation. Virtually every portal, from eMoney to Betterment to FeeX, lets clients aggregate their financial information. Custodians like Schwab and Fidelity now offer some form of aggregation to their retail customers as well.
The quality of the offerings varies, but it’s plain to see where the puck is going: As access to consolidated financial information approaches ubiquity, technology to improve the client dashboard experience will rapidly advance and become commoditized.
As an advisor who is used to being an information gatekeeper, you should know about these new websites and apps before your client tells you they’ve found a way to replace some of your jobs.
The Battle for Eyeballs
The battle for client eyeballs is in full swing. In another article, I’ll cover the platform providers, like Orion and BlackDiamond, which provide real artillery to advisors in this war, but this piece is focused on what the consumer can access for a low-to-zero price point.