It has been nearly a year since the coronavirus pandemic upended just about every aspect of life — for financial advisors, their clients and everyone else.
National lockdown orders and market volatility have had a material impact on business, with many people losing their jobs or placed on furlough. Then there is the emotional toll of more than 500,000 deaths in the U.S. alone, and countless more who have been sick with COVID-19.
All of this has changed how clients engage with their financial advisors and has broad implications for the future of the wealth management industry, says Kapin Vora, head of consulting firm Capco’s North American wealth management business. In a virtual event hosted by Financial Planning’s technology editor, Ryan W. Neal, Vora and Maura Creekmore, managing director of BNY Mellon Pershing, discuss exactly how the advisory business has changed in the wake of the pandemic and what it means for the future of wealth management.
For example, getting advisors to adopt new technology was traditionally a struggle for many firms, but the pandemic has forced many to finally embrace digital tools and realize how it can benefit a practice, Creekmore says.
“Adoption of technology went from being a nice-to-have option to a must-have mandate,” Creekmore says.
It’s not just video conferencing apps like Zoom — many advisors are for the first time taking advantage of capabilities like e-signature and digital, straight-through processing for new accounts, she adds. “For 20 years we’ve been trying to get advisors to adopt these tools, and now it’s happening.”
Creekmore and Vora discuss how this is influencing investments and product development within large firms as well as fintech startups, what new opportunities are being created for financial advisors, and how advisors can continue to offer white-glove service to their wealthiest clients in a digital-first environment.
“Like anything else, I think this year has been all about winners and losers,” Vora says. “The winners have been those who have been able to take a look at the situation, adapt extremely fast, work with their clients to develop a level of resiliency, show a level of transparency … and really allow experienced advisors to rise.”