At the annual eMoney Summit, which was held virtually this week, executives from the financial planning software world got philosophical about the industry.
Why do investors turn to financial advisors in an era where investing is easily accessible and inexpensive? What motivates a person to be a financial advisor? And how does a wealthtech company like eMoney Advisor tie the two together?
Jess Liberi, the company’s head of product, invoked the Japanese concept of “ikigai,” which translates to “that which gives one’s life worth, meaning or purpose.” It’s finding the intersection of your passions, values, beliefs and vocation, whether for a person or a company, she said.
“In short, it’s a way to describe what gets you up each and every morning, and what keeps you going each and every day,” Liberi said.
That purpose for eMoney is helping advisors do more financial planning for more people, she said. “[Advisors] need the tools to serve any client regardless of their age, assets values, life stage, financial needs or their desired engagement model.”
To achieve this, the Fidelity-owned wealthtech is shifting the focus of the platform to Decision Center, eMoney’s cash-flow planning tool, as the single hub for advisors to manage workflows. Advisors will be able to make changes and adjustments to plans without having to navigate to other tools, and eMoney is building what Liberi calls “what-if scenarios,” where advisors can assess the impact that unexpected conditions may have on a plan.
Clients will be able to play with these what-if scenarios as well without it actually changing the plan currently in place.
“Think of it as a playground type of experience, but then made fully visible back to the advisor … so that he or she can have a really engaging conversation with them about those thoughts,” Liberi told Financial Planning.
In early 2022, the company plans to make its marketing tool, Bamboo, available as a separate product, so advisors without an eMoney license can access it. eMoney is also beta testing a new service where financial advisors can outsource the creation, design and modeling of financial plans to eMoney.
“We know you want to offer even more planning to more of your clients, but that some of you may not have the resources necessary to meet your planning goals,” Liberi said. “The advisors who have participated in this program have been extremely satisfied.”
The themes driving the company’s roadmap were inspired by research on more than 800 financial advisors and clients using eMoney.
While it’s no surprise that 86% of clients seek an advisor to grow their wealth, 85% say they want an advisor to help them achieve peace of mind, according to an eMoney survey of advisors and end-clients. Nine out of 10 advisors say they enjoy helping people and say providing that peace of mind makes them feel fulfilled.
Yet some barriers remain: 34% of clients said an inability to view all of their finances in one place was a barrier to achieving financial wellness. Thirty-one percent said they have difficulty getting sound advice.
“Delivering financial advice is a helping profession … and there is no denying that today, more people are looking for financial stability,” said eMoney head of financial planning Matt Schulte, who presented results of the study during the virtual conference. “There is a real opportunity to engage with them in deeper ways and enjoy longer, more successful relationships.”