Modern technologies are emerging at such dizzying speeds, they are almost outpacing their adoption. From enhanced aggregation to do-it-yourself automated financial planning advice solutions, the field is changing in ways the founders of financial planning movement never imagined year ago.
Changing adviser and investor demographics are shaping the way advisers deliver their services. With a far more technologically literate and diverse clientele, fundamental changes in their business models, technology platforms and communication strategies are necessary.
Introducing Gen Z
Gen Z is the generation that follows the millennials. According to the generation guide by Michael T. Robinson, Gen Z are those who are born after the year 1995. They are either fresh graduates, or students in college, high school, middle school etc. Members of Gen Z will have to face their own set of challenges as they contend with sky-high college fees and the prospect of burdensome debt when they graduate – not to mention a job environment that is less than welcoming. It is pivotal to ensure that they are educated on financial planning in their early years.
In a survey conducted by BTO, 41% of Gen Z expressed that they’re concerned about their lack of knowledge in financial planning.
This may not be all bad news as it shows that they are aware they need to step up their financial literacy. As financial advisers, it is best to adopt an educating approach to introduce financial planning and its benefits to Gen Z.
It is also found that 59% of members of Gen Z think that the best time to save for retirement is when they’re between the ages of 21 and 35.
“The sooner they [Gen Z] start saving and investing, the better they will be off in the long run due to the benefits of compounding. Some realise they should start sooner rather than later but many will delay.” – Curt Hubbard, Director at Chartwell Associates
Technology is their first language.
It is no surprise that 94% of Gen Z indicate that a mobile phone is the primary device they use.
“They expect technology to play a role and want quick feedback. Software such as Aardviser will prove popular for them because on the graphical nature and the ability to see the impact of various decisions on their timelines.” – Curt Hubbard, Director at Chartwell Associates
New emerging financial planning software companies understand this opportunity and have conceived new paradigms and greatly improved the existing ones. It is a great time for advisors to review what is available and what is already on their computers. This innovation will only accelerate as financial planning companies create new and better ways for advisors to interact with their clients and operationalise the financial planning process.
Aardviser & Gen Z
Aardviser was created using the latest banking-grade security and user-centric design thinking to guide people to take optimum decisions based on their personal priorities when financing their dreams. Every person’s life is complex and unique, and Aardviser captures every detail of it: education costs, healthcare cost evolution, salary, expenses, job progression, retirement, wedding, property, investments, insurance, and more into a digital collaboration space where financial advisers and their clients can plan in full transparency towards making dreams a reality.
“Aardviser has been designed to reflect the uniqueness of the lifestyle of everyone and especially for Gen Z, removing complicated financial jargon, integrating seamlessly with their social environment and shifting discussions from product centric to lifestyle centric. Aardviser offers a fully transparent, collaborative, easy to use, yet holistic solution to a new generation of advisers and customers in need of trust and belief for the future.” – Robert Lonsdorfer, Founder and CEO of BetterTradeOff