The use of financial planning technology has become more
widespread in recent years. The question is, what can
planners do to make the most of it — and how is it already
influencing planning outcomes?
TORONTO, April 30, 2024 /CNW/ - The COVID-19 pandemic has
meant that financial planners are increasingly adopting new
technologies when working with clients. Virtual communications and
FinTech, in particular, are offering many advantages — but
they're also presenting challenges.
Understanding these technologies and how they're impacting
planning outcomes is essential. These insights allow for the
continued development of best practices, enabling planners to
leverage virtual communication and FinTech effectively and improve
the financial planning experience for clients.
The Canadian Foundation for
Financial Planning and Kansas State
University Investigate
The Canadian Foundation for Financial Planning (formerly the FP
Canada Research Foundation™) funded research to explore financial
planning technology in practice. Conducted by researchers at
Kansas State University, it examined
best practices for conducting financial planning meetings
virtually and using FinTech and virtual communications.
The research also looked at how these technologies influence
planning outcomes from both the planner's and the client's
perspectives. Here are just a few key findings, which highlight
some of the advantages and challenges arising around the use of
virtual meetings, virtual communication, and FinTech:
- The majority of planners intend to use virtual meeting
platforms often, if not always, but most favoured being in
person for initial meetings with new clients.
- Among clients, in-person meetings were the majority
preference.
- Among clients who elected to meet virtually, nearly 80% were
somewhat or extremely satisfied with their relationship with their
planner.
- Over half of planners said FinTech improved planner-client
relationships; about half of clients said the same — and reported
benefits such as more effective financial decision making.
- Many planners also expressed frustrations with FinTech
around issues related to access, challenges with integration
between tools, and difficulty with user interfaces.
Applying the Findings: Best
Practices for Financial Planners
The research findings point to best practices for making the
most of financial planning technologies while minimizing its
challenges. With regard to virtual meetings, planners should check
in with clients about their preferences around virtual versus
in-person meetings. Efforts to enhance their virtual
communication skills, test technology ahead of time, and understand
client comfort levels with technology can alleviate some of the
negative aspects associated with virtual meetings.
Planners often recognize the value of FinTech, but for many,
there are opportunities to use it more strategically. When
leveraging FinTech, planners should ensure they take the time
to explain any tools used in client engagement. They should also
consider how best to use email; setting up client email
notifications about accounts and investments, obtaining permission
to engage in email communication with clients, and ensuring that
clients are active participants in communication who receive
relevant content can all be beneficial steps.
To learn more, visit the website to read
the research paper and executive
summary. You'll also find the practice notes, which
are designed to help financial planners apply insights from the
research.
Canadian Foundation for Financial
Planning
The Canadian Foundation for Financial Planning is an independent
registered charity dedicated to improving the lives of Canadians by
supporting widespread access to the benefits of financial planning.
Our work impacts all Canadians, no matter their financial
circumstance. Through our research, partners, and volunteer
financial planning professionals, those who need it most will have
improved access to financial planning advice, and the knowledge and
skills to feel financially secure and enhance their financial
well-being – something every Canadian needs and deserves.
SOURCE FP Canada