One book you’ll want to read this Christmas
Catching the FinTech Wave – How to adopt FinTech and Transform Your Financial Planning Business, written by Ben Goss, chief executive of Distribution Technology, tackles the 5 “big challenges” all financial planning firms face in utilising digital.
It is a book you’ll want to read when you get time over the Christmas period and at around 150 pages, plus glossary, it is a quick to get to grips with and extremely insightful for any adviser business owner wanting to know how FinTech might impact their future.
It is also a practical read – by which I mean Goss starts the book by summarising what is in each chapter, allowing readers who may be at different stages in their FinTech journey to quickly see what is relevant to them. This is supplemented in the chapters themselves, by bullet points outlining the key themes as well as two or three ‘Best practice learning’ takeaways.
There are “five big challenges” that all companies face in utilising digital in their financial planning offerings, Goss says. The book aims to help adviser firms build a service with FinTech which is strong enough to withstand them, no matter where the business sits in terms of its service proposition, by helping them use digital to go from being the kind of firm they are now on their “best day”, to being a “force multiplier”, i.e. a resource that will help make the business many more times effective than it would be without use of digital technology.
The danger for the financial advice market is that the more sophisticated and capable technology becomes, so the more commoditised the financial advice journey will become.
That is already happening and what advisers need to do is make best use of technology to help make their businesses more efficient and so more cost effective, while focussing on what technology can’t do – the human interaction.
As Goss puts it: Firms that will succeed in the future are those that “embrace FinTech” and “accept that there is a difference between automating tasks and the empathy required to understand a customer’s situation and build a plan on which the customer is willing to take action.”
Derived from Goss’s blogs on the Dynamic Planner website (you can read what motivated him to write the book here), the book tackles the advice process, starting with financial planning, asset and risk modelling (as you’d expect from the founder of Dynamic Planner), suitability, compliance, engaging with customers and bringing advisers on the digital journey with you.
Research by Fidelity in the US in 2016 revealed that adviser firms that had embraced digital had 40% more assets under management than traditional advisers. The ball is rolling and, as we know with the technology we use every day, change happens very quickly. So, I’d suggest reading this book before we move into 2018 and all it will bring with it.
Founder and editor