2019 has finally arrived, but the march of time and the accompanying technological progress continues. With this in mind, let’s look at some tech trends financial advisors should look out for in 2019.
A term you may already be familiar with is “Fintech” (short for financial technology). And if you aren’t familiar, Investopedia describes it as “new tech that seeks to improve and automate the delivery and use of financial services.” While fintech has been discussed (and feared) for the last few years, below are some innovations that may be important in 2019.
Banking on Blockchain
While cryptocurrencies such as Bitcoin may or may not be the future, the underlying technology that led to them–blockchain–certainly will. Blockchain is essentially an innovative way to keep distributed, decentralized, and public records. It’s expected to prove extremely important for mobile security as well as efforts to remain transparent.
Robotic Process Automation
Robotic Process Automation (RPA) utilizes bots to automate routine tasks, such as plugging in data to Excel spreadsheets or adding content to Customer Relationship Management (CRM) software. Interestingly enough, it uses the same software interface as a human employee, only it has a much cheaper annual cost. As the improvements in artificial intelligence means 2019 will see an uptick in financial firms adopting RPA software, the social ramifications of financial workers being replaced by bots remain to be seen.
Continued growth of mobile payments
While mobile transactions are nothing new these days, the impending rollout of 5G broadband technology means using your phone for financial services will be quicker and easier than ever before. This also means areas without physical financial institutions can be better served by mobile solutions. Millions of customers and financial professionals alike have already made the switch to mobile transaction, but 2019 will see even more growth in mobile financial services rendered.
Regtech
Alongside fintech comes “regtech,” regulatory technology that allows firms to rely on new compliance technologies instead of hiring compliance employees. This will include: regulatory reporting, compliance checks, risk management, identity management, and transaction monitoring. Regtech will dramatically reduce the costs for financial firms, further lowering the barrier for entry into the financial services industry.
Third Wave of Financial Planning
Angela Pecoraro, featured in ThinkAdvisor, believes 2019 heralds the “third wave of financial planning.” While the first wave was concerned with cash-flow planning and the second was concerned with goal-based planning, the third wave brings these two approaches together. Perhaps with help from the above innovations, advisors will be able to provide a more holistic approach to their practice.
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https://www.thinkadvisor.com/2019/01/02/welcome-to-the-third-wave-of-financial-planning/
https://www.investopedia.com/terms/f/fintech.asp
https://learn.g2crowd.com/2019-fintech-trends
