The future of financial advisory

Blog | 13/11/2018

One of the key questions at MoneyRebel’s event in Lisbon, Portugal, where the MoneyRebel team hosted local financial advisors was, how will the digital revolution impact traditional financial advisors?

Most of them are still working in the same old way that they used to, and do not know how to enter the digital era. That was also the key question at MoneyRebel’s event in Lisbon, Portugal, where the MoneyRebel team hosted local financial advisors.

“16 years ago, when I started, there were hardly any devices like we have today. We began business by going through the telephone book, from 5 to 7 PM; we called land lines, knowing that people would be at home on Sundays. We arranged meetings at their homes. Upon arrival, we took a piece of paper to draw things to provide a clearer picture to the potential customer. Documents were signed if we agreed to cooperate, which meant they were sent to the financial company the next day,” described Mitja Vezovišek, wealth manager and CEO of Vezovišek & Partnerji.

He continued: “Sadly, nothing much changed since then, It is true, we use computers and emails, but we still use telemarketing, face-to-face meetings, and we gather data in the old fashion way, irrespective of whether that be in Slovenia, Spain, Italy, France or Portugal. But things are changing rapidly. New technology is emerging every month and whoever thinks that doing things in the same old way will be enough in the future, is hugely mistaken,” added Mitja Vezovišek.

Crypto is a new trend

One of the realities is also crypto, a field that is disrupting old realities. “2 years ago, I started with crypto with all the details: how to open a wallet, how to exchange, and how to transfer money. I also taught and helped friends on how and what to buy. It was in 2017, the year of ICOs,” described Matjaž Mausser, on his beginnings in crypto, as a skilled crypto advisor. In crypto, everything is much faster. There is not time to sleep. From this year onwards, when everything has plummeted by even as much as up to 98 % (in crypto token value), he found new opportunities in master nodes.

“If I remained at the level, with respect to my knowledge, that I had 16 years ago, I wouldn’t be an advisor anymore. Even if I only had knowledge from 3 years ago, and knew nothing about crypto, ETF etc., my clients and I would have remained partially illiterate, from a financial point of view. I could have lost my business. If you want to be a successful financial advisor, you need to learn faster than your clients,” revealed Mitja Vezovišek.

A new generation of digital users

We will always have clients who want to meet in person, but this new generation, growing up with computers and smartphones, will totally change the percentage of ‘one-to-one meetings’ users. “In 20 years, most of our clients will be digitally active.”

Financial industry trends are going the way of digital, customer centric, automated and blockchain based. “In PwC research from 2017, more than 80% of financial institutions believe their business is at risk, 82% expect Fintech partnerships to increase in the next 3 to 5 years, 77% expect to adopt blockchain as part of the process,” explained Nataša Kozlevčar, MoneyRebel co-founder.

“Are advisors dead?” was her question to the audience. They all agreed they need to leverage technology and become customer centric in order to survive.

Advisors should be customer centric

She explained: “As an advisor, I am preparing reports and killing my assistants in crazy hours at any time of the day so that our customers have the impression that we are way ahead of them. When I delved deeper into the word of customer centric, I understood that I was customer focused, but not centric. Being customer centric means that you go deeper and attempt to focus on the high-value customer segment and try to please them to drive more profit,” she revealed and pointed out that the whole company must be like that, otherwise customers will lose the feeling that they are being taken into consideration.
MoneyRebel on Web Summit in Lisbon, Portugal.

In order to do that you need to rid yourself of time killers, such as telemarketing, gathering data, KYC, doing on reports, plans, etc. “You need to leave the traditional channels to others, and focus on building the relationship with your customers, trying to understand what your target group loves and what kind of information they need, in order to entrust you as their tight confidante. And you will only be able to do that by leveraging new technology. If you are lucky, it will provide everything in one digital advisory experience.” How? With the help of new advisory tools, such as MoneyRebel.

We are competing against companies from the internet minute. They are our customers. We need to make drastic changes, to go digital, and to spare 80% of our time to be able to focus on the things that matter?—?on customers, their needs and what drives them.”

Our team is now on the second European tour. We started out at a private event in Lisbon, Portugal as a part of the Web Summit. Our next stops are Milan, Italy, London, the UK and Paris, France. We are focused on bringing aboard independent European financial advisory companies. If you are interested, you are more than welcome to get in touch with us and we will gladly provide you with the information on how MoneyRebel can help you excel in your business.

The future of financial advisory

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