We’re not in the technology industry, but it’s clear technology is important to ALL industries, including financial services. As you evaluate your business model to meet new regulations, you should also consider how technology can make those changes more effective.
Recently, I read an article published by CISCO about digitization and the Global Center for Digital Business Transformation’s 2015 study on digital disruption. Digitalization, according to the article, refers to upgrading an office by creating a website or investing in cutting-edge technologies. By evaluating your own digitalization, you ultimately will be able to improve your client experience, a key differentiator that can set you apart from competitors. Advisors and financial planning firms that master this idea will stand a step above the rest.
The risk of NOT thinking digitally may prove costly. The Global Center’s study predicts four of the top 10 industries will be replaced in the next three years due to “digital disruption” – when a technological advancement makes an industry nearly obsolete. For example, film cameras were replaced by digital cameras, and even digital cameras are now being replaced by smartphone cameras.
Failing to be up to speed with the digital world will result in being passed by those who have the technological advances. Our clients are bombarded by digital advertising and notifications, so we must remain at the forefront of their minds in order to capture market share. Only through a process of effective digitalization will our business be able to successfully reach clients and remain competitive.
Government regulation forces us to look at our business differently now, but technology can provide the tools we need to catapult our business to a higher level. As you evaluate changes to your practice, ask yourself:
Both will help you increase your market share in the future.
Rethink your business model and client experience in order to improve. Don’t allow new regulation to be the disruptor that solely shapes your business – use technology to make it more valuable to your clients and prospects.
Mike McGlothlin is the Executive Vice President of Annuities at Ash Brokerage. His strength is helping advisors become more efficient and effective in their businesses. He and his team provide income-planning solutions focused on longevity and tax efficiency, and they also assist advisors with entering defined-benefit termination planning and structured settlement markets.
© 2018 Ash Brokerage LLC.