A Match Made in Financial Heaven: 3 Ways Tech is Re-Shaping the Financial Advisor and Investor Relationship
We sat down with CEO and Founder of WealthRamp, Pam Krueger, to discuss the challenges that investors have when searching for the right financial advisor. Her vision of helping investors take control of their financial futures is using a ‘match-making’ technology to align them with an advisor that fits the criteria needed to help them meet their financial goals. Here are 3 ways tech is re-shaping the financial and advisor relationship:
- Putting the Investor Interests First
Many investors find it difficult to trust that financial advisors and wealth management firms have their best interests at heart when almost 90% of the industry operates in a sales-driven business model. It’s not to say that the advisor doesn’t have the right intentions, but it’s that the model itself is not designed with the client in mind. WealthRamp’s approach to matching advisors and investors is designed to protect the investor from the very beginning. The investor submits their financial criteria along with their goals to get matched through an anonymous system that provides them options that best fit their needs.
- Collaborative Financial Advice for the DIY Investor
For some, leveraging a financial advisor has felt unnecessary and left many investors in the DIY category. However, DIY can only take investors so far, especially when life gets a little more complex. They might not want an advisor to manage their entire portfolio – maybe, all they are looking for is an advisor that can provide a little more guidance, such as stress testing, or ongoing cash flow analysis. With WealthRamp, they can find an advisor that best fits their investment style.
“At the end of the day – doesn’t matter who you are on the spectrum – we all want one thing. We all want peace of mind and confidence that we have a plan that works that won’t let us go to zero.” – Pam Krueger
- Educating Investors
It’s an unfortunate reality that many investors don’t always know the options that are available to them. WealthRamp’s “WealthRamp for the Workplace” initiative acts similar to an employee concierge service. They partner with firms that are looking to provide employees with tools to help them improve their financial wellness. Educating them through lunch-and-learn sessions allows employees to ask the expert team at WealthRamp about their options and what is available to them through their technology. Through better understanding, they can make better decisions when it comes to their choosing a financial advisor, and ultimately their financial futures.
Listen to the full Ventures in Wealthtech episode to learn how investors can make better decisions and empower them when it comes to their financial health.
Marshall Smith CIPM, EVP of Services, has been with First Rate since 2006. You can follow Marshall on Twitter @MarshallCSmith, or connect via LinkedIn.