17 Feb 2021 Ankit Chadha

Despite Dramatic Shifts, ‘Personal Touch’ Dominates The Financial Advisory Services Space

Financial Advisory Services | TRC Corporate Consulting

Ruling out of ‘personal touch’ from the advisory services will never prove a feasible and smart option. Quality interactions with the service providers still hold importance as they used to. Interactions are crucial for a better understanding of the existing circumstances and the evolving landscape. Machines and software are doubtlessly more efficient than humans but will never be equally passionate and pioneering. That’s where financial advisory companies make a mark and take over the marketplace.

Organizations have been replacing financial advisors with technological tools and software for the management of their finances and recommendations. Though fintech has automated tasks and proved to be a successful disruptor in the market, the presence of personal touch is irreplaceable. Also, they suffer from drawbacks like regulatory confusions and an understanding of qualitative factors in play.

As predicted by experts, financial advisory services will be in great demand and have a broad scope in the long run. Financial advisory consulting is being undervalued with the recent inventions being made and the organizations’ tight budget. With the increasing uncertainties and complexities, organizations will understand the importance of hiring financial advisors to better function.

Factors Driving Change and Lack of Personal Touch in Them 

There are certain factors driving change in the scope of financial advisory services. But a need for personal touch seems to be missing in them. Continue reading to understand better.

  1. Technology and Maturing Organizations

The advent of Robo-advisors is the emerging driver. They automate the financial advisory services efficiently and to a great extent. They help in the management of a financial portfolio with the use of technology. A financial advisor can’t be replaced with a Robo-advisor, as they can’t advise organizations about changing their objectives with the changing environment.

Though financial advisors also deal with managing the financial portfolio and act as an investment advisory but, they spend most of their time in financial planning. A well-structured financial advisory services’ plan leads the way to achieve set goals. Human advisors can also prevent the management from distressing by understanding things and modifying strategies then and there.

Software and various applications can help in amplifying the human component by helping with back-end functions. Technology can help make financial advisory services and communication with clients easy, but it is highly vulnerable to the prevailing cyber threats.

          2. Fiduciary Rules 

Continuing from a long time, there’s still an ongoing debate on the regulation of investment advisors and brokers. They get stuck amongst conflict of interests of their clients and investors.

Although, with the new rule passed by the Securities and Exchange Commission, known as Regulation Best Interest, the focus needs to be shifted to the clients’ interest from investors. Now, a financial advisor needs to make recommendations in the best interest of their clientele. Since there’s no clarity on this yet, advisors are not obligated to follow these rules.  Thus, advisors continue to function under Investment Advisors Act, 1940. Also, the rule does not give any clear-cut differences between a broker and the registered advisors’ role.

With so much confusion for the rules, responsibilities, and function of financial advisory consulting, is it feasible to entirely depend on technology? The answer will probably be ‘no’ from most of you. Undoubtedly, different technologies and tools will perform outstandingly well when it comes to calculations and numbers. But, when it comes to incorporating qualitative factors and changing rules, the business of interest, etc., technology might not prove to out the expertise of financial advisory services.

         3. Consolidation of Financial Advisory Companies: Are big getting bigger? 

Here comes a dilemma, will small, registered investment advisory consolidate or eventually fade away? Big financial advisory companies are already performing well and will continue to do so. How about the small ones?

For businesses to stay competitive and survive in a challenging environment, investment plays a significant role. Similarly, for financial advisory companies, and financial advisory services, it is essential for them to invest in creating a base of expert financial advisors who evolve with the environment. Apart from this, the formation of investment advisory is also important.

A financial consulting company like TRC is all-ready with a pool of talented advisors to cope with the emerging trends. They have been investing over a while in the best resources and have a ready force to help the clients achieve what they aim for.

From Around The Globe: A New Trend in Personal Advice 

Earlier, financial advisory consulting services were provided via insurance agencies, dedicated management offices, and bank branches. With advancements in place, few firms have started to connect digitally, sticking to providing personalized financial advisory services and investment advisory services. This depicts, the structure of the firms remains rooted in a physical network.

Two significant trends observed as new approaches to personal advice in financial advisory consulting are:

  1. Robo-Advisors

These are useful to some extent for the millennials and prove to be successful. But, what about non-Millennials? Will the Robo-advisors be able to serve them well? Will they be able to replicate human advisor’s trust and intimacy? Or go beyond a basic investment solution? These are few common questions that arise when it comes to Robo-advisors and highlight their inabilities.

  1. Virtual Advices 

Pandemic has changed the way businesses function. Handling digital and consulting businesses, including financial consultancy company, virtually has been tested to a great extent, and it has been a success. Virtual advice just involve communicating via applications like zoom, skype, etc.

Even though they might not be as efficient as a personal touch, they offer highly personalized recommendations and services. Unless high-value clients get comfortable with this and readily accept it, it might not seep into the marketplace.

Why Leverage Financial Advisory Services from TRC Consulting? 

To survive in the highly competitive market, an organization must avail personalized services and recommendations to outperform its competitors.

At TRC Corporate Consulting, we excel in financial advisory consulting services and provide our clients with highly personalized services. Our experts and advisors have years of experience, helping their clients achieve organizational efficiencies and drive profits. With their investment advisory, they help clients in maintaining a productive financial portfolio. 

Combining the practical experience, theoretical knowledge, research, and environmental awareness, our advisors make TRC Consulting one of the leading financial advisory companies.

Looking for the best financial consultancy company? Contact us now!

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