These advancements won’t come without some sort of industry shake-up, changing the way advisors interact with their clients, just as social media has. This rejigging includes changing fee structures as technological services offer cheaper rates, and increasing transparency as robo-advisor models offer fixed and basis-point fees.
And, what about luring the younger generation? With the youth of today plugged in literally all the time and expecting results "now," how will advisors keep up with this 24/7 demand? Communicating with clients via text, web conferencing; while working on documents in tandem and providing comparative data on peer investments will become the norm.
“The younger generation tends to trust the Internet and computers quite a bit. More than is warranted,” says Rempel. “They often start that way and then realize as they build money and their situation becomes more complex … maybe I should be getting more advice on this?”
One way to ward off the robo-advisor invasion is to face any fears head on. Keep on top of what you can, embrace new technology and make adjustments accordingly.
“On the marketing side, I think social media is changing the landscape,” admits Paton. “(Advisors) need to be blogging and tweeting; reaching out the people and giving them free information to attract them to you.”