How Digital Advice Platforms Can Grow Your Business

As the world continues to become more digital, financial advisors are seeing the benefits of incorporating digital advice platforms into their business strategies. With the increase in e-commerce in recent years, 4.5 trillion U.S. dollars is expected flow into robo-advisors by the year 2027 ¹. This emergent investor is demonstrating a lack of desire to engage with professional service that financial advisors have traditionally been known to provide. Financial advisors who are looking to grow and expand their business need to consider embracing this new form of advice delivery due to the growing number of investors. Fundamentally, this emerging investor class is digital to the core as reflected in many ways such as their e-commerce purchases. The advice delivery future must embrace this preference for the sake of growing a sustainable business model—a trend set by the consumer. Long are the days when advisors fit their clients into their process of financial advice and instead advisors need to fit in the process of their clients’ desire. Digitization bridges this gap and is shaping the future of financial advice.

With technology trends changing so rapidly and investor behavior shaping the future of financial advice, advisors should continually be evolving their business model. To build a business model that includes the emergent investor, advisors should focus on:

1. Improved Efficiency: By automating many of the routine tasks involved in managing clients’ investments, advisors can free up more time to focus on providing personalized advice and building relationships with their clients. This can lead to increased client satisfaction and loyalty, with the expectation of translating into more business.

2. Enhanced Client Experience: Another benefit of using a digital advice platform is that, for many audiences, it provides clients with a more engaging and interactive experience. Many clients will feel more in control of their investments and better understand the reasoning behind their advisor’s recommendations. This may lead to a more trusting and collaborative relationship between the advisor and their clients.

3. Increased Scalability: As advisors grow their businesses, it can be challenging to keep up with the demands of managing a larger client base. However, by using a digital advice platform, advisors can increase their scalability without sacrificing quality or personalized service.

4. Improved Compliance: A digital advice platform can help advisors stay on top of compliance requirements by automating many of the processes involved in managing client investments and reducing the risk of errors or oversights that may lead to compliance violations.

5. Access to More Investment Options: Finally, a digital advice platform can give advisors access to a wider range of investment options than they might be able to provide on their own. By leveraging the expertise of the platform provider, advisors have the potential to offer their clients more diversified portfolios and better risk management strategies.

A digital advice platform is a powerful tool for financial advisors who are looking to grow their businesses, scale clientele, and implement a new revenue source for their business. By streamlining routine tasks, improving efficiency, and providing personalized recommendations, these platforms can help advisors build stronger relationships with new and existing clients and ultimately achieve greater success in their careers.

Golden State offers a proprietary digital advice platform for its advisors that has been internally custom-built and tailored to meet the needs of current investor trends and behavior. Golden State provides the support advisors need to build strong and enduring businesses. With this newly formed digital advice platform, Golden State sees the value of planning for a digital future and continues to offer cutting edge practice management solutions to its advisors.

¹“Retail e-commerce sales worldwide from 2014 to 2026”, Statista, Sept. 21, 2022; “AUM of robo-advisors worldwide 2018-2027”, Statista Research Department, Aug. 9, 2023.

Disclosure: Advisory services offered through Golden State Asset Management (“GSAM”), a registered investment adviser with the U.S. Securities and Exchange Commission. Registration as an investment adviser does not imply a particular level of skill or training.