The Evolution of Fintech, the Modern Investor, and Tomorrow’s Advisors

Financial technology has revolutionized money management and the investor experience. Investors are more tech-savvy and, therefore, fastidious about digital capabilities than ever before, which places substantial pressure on brokerage providers and advisors. Those who incorporate frictionless UX and robust features into their platforms will stay competitive — those who don’t will lag behind indefinitely.

Key Takeaways

• The line between advised and self-directed investors has blurred, but technology remains the key to securing and retaining additional clients.
• More capital flowed into fintechs in 2021 than all of 2017, 2019, and 2020 combined — raising the industry’s growth trajectory and presenting a major opportunity for advisors that stay ahead of the curve by augmenting their platforms. 
• Technology has transformed investing, giving rise to a new generation of tech-savvy investors who are finicky about digital platforms but deeply desire financial guidance.
• Many advisors have already lost business due to inadequate technology. Acceptance and adoption of third-party digital tools will separate the winners from the losers in the advisory space.