They might also reflect shifts in the client's risk preferences, which could encourage the adviser to restructure the portfolio. Additionally, the system signals any changes in the client’s personal interest and expertise in financial matters. This information is essential for maintaining effective communication, and understanding how the client makes decisions, enabling the adviser to provide the best support possible.
These changes are identified through an algorithmic analysis of information provided by the client in regular dialogue. Advisers are immediately notified of significant changes via an online dashboard that displays their clients’ behavioural profiles.
Oberlechner explains that the software is also easy to use and the results readily available and understandable. The high-tech approach also saves a lot of time and fosters effective communication. Even the automated customer dialogue is varied and client-specific.
This dialogue is an interactive survey initiated by the adviser with a simple click. The client receives an invitation email containing a link that guides them through a 10-minute session of questions and decision scenarios.
Unlike traditional paper-and-pencil surveys, this dialogue provides the client with real-time feedback, displaying their progress, selected results and comparisons even during the survey and on completion.
Once the client completes the dialogue, the results are instantly displayed on the adviser's online dashboard. Additionally, a printable client report of the key results and explanations is generated, which the adviser can either print out to hand to the client or send via email.
Studies from firms like Charles Schwab confirm that such software can raise customer loyalty, lead to higher rates of customer acquisition, and outpace more traditional firms with their fundamental product-orientation, despite many claims to the contrary.
What matters most to investors is that their advisers really understand them, their needs and their preferences and most of all, advise and act accordingly.
Clients are demanding more and more of a personal touch from advisers and often expect some high-tech computerised support as well. In other words, a mixture of robo-advisers and a human whom they can trust and rely on is regarded as optimal.
Investors evidently perceive this computer-supported advisory process as not so much about money as in the past, and more about them and what they want and require. The aim is to provide advice on a level playing field with as little information asymmetry as possible.
Finally, it can be used by all market players, from large firms down to individual and independent advisers.
Certainly, this software is in its early days and still has to prove its worth and value over time. However, the underlying concepts suggest a major step forward – something desperately needed in an industry so fraught with conflicts of interest and products that fail to deliver.
