In today’s rapidly evolving digital landscape, new technologies are profoundly disrupting and reshaping the way individuals manage their finances. One ever-evolving relationship is the one between financial advisors and their clients, which changes as tools and information continue to become more widely accessible. Consumers expect their interactions to be seamless and intuitive, pushing financial services brands towards rapid adoption of AI, diverse platforms and interfaces, personalization, and even gamification.
Prior to the proliferation of consumer portfolio management tools and investing resources, only the most financially savvy and ambitious among us actively managed their finances. More commonly, this responsibility was left to a trusted, professional financial advisor. While many still rely on advisors, the role of those advisors is changing, and new technology and advances in CX are changing these experiences.
In this article, we’ll explore the UX trends driving shifts in these experiences and why they matter.
Financial firms are embracing a hybrid AI + human advisory model that combines AI-powered robo-investing with human advisors to provide both tech-forward personalization and the peace of mind of working with a dedicated person.
The automation of robo-investing, which uses algorithms to manage investments based on factors like an individual's financial goals, age, and risk tolerance, provides a number of benefits for the investor and the financial institution alike. For financial institutions, this automation offers scalable, continuous monitoring of portfolios, as well as efficient optimization and decision-making capabilities. This allows for a greater volume of work and more personalized, data-informed approaches.
For the investor, we’re seeing lower or no fees and low minimum investment requirements, lowering the barrier to entry and making financial literacy more accessible to more people. With tailored recommendations powered by AI and new data visualization tools to track progress, both parties benefit from a more personalized and seamless experience.
However, despite the benefits, research shows that consumers are still comforted by having a person available for specific advice or to answer questions, making the hybrid model appealing.
Why this matters:
Social media is a popular source for financial education, with Gen Z and Millennial investors especially relying on sources like YouTube for deep, detailed, visual explanations and TikTok for easily accessible, short-form content they can browse anytime, anywhere. However, investors acknowledge that not all of these new sources are accurate and unbiased, so they appreciate when an advisor creates or recommends relevant content they know they can trust.
Financial institutions are creating new content to meet the rising demand for educational resources around topics like cryptocurrency and options trading, as investors see new opportunities and want to understand them. However, many investors feel overwhelmed by the sheer volume of educational content available to them and would still rather rely on an expert advisor rather than take the time to fully educate themselves.
Why this matters:
Firms that fail to create trusted digital education ecosystems risk losing relevance as younger investors turn to influencers over institutions.
Unsurprisingly, financial advisors are capitalizing on the mobile-first, app-centric UX that investors expect from their financial institutions and tools.
Key mobile features driving engagement (and revenue):
There are countless ways financial services brands can use technology to not only create seamless customer experiences but also empower financial professionals to build deeper, trust-based relationships with their clients.