Navigating Digital Advice

An introduction to evaluating a digital advice solution at your firm

The age of digital advice is here. Many firms are seeking an engaging, efficient, and scalable way to serve smaller accounts and high-potential clients that can grow assets over time. Others want to increase advisor productivity. Digital advice can help firms achieve these goals — and more.

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Pursuing a digital advice solution is about more than selecting the right technology.

It includes making decisions that are both strategic and technical. Most advisors with whom Fidelity has spoken are interested in blending both human and digital elements for their clients.*

The following four steps provide a roadmap for you to consider when integrating automated investment management into your firm.

What is your vision for digital advice? Having clear goals and a firm understanding of the clients you plan to serve will lay a solid foundation for the business changes you will likely need to make:

  • Specify goals for digital advice offering
  • Segment your business — identify end investors target

Clearly define the products and services you will offer, and the client experience you wish to deliver. Do you want to provide a client experience that is purely digital, or create an experience that relies on human contact, while leveraging technology to create efficiencies?

  • Outline product and services
  • Define your engagement model
  • Name your offering
  • Identify important features in technology solution

Identify the right technology solution, required resources, operational changes, and pricing structure up front, to plan for a smooth implementation.

  • Select the right technology solution
  • Evaluate your resources
  • Review policies and procedures
  • Develop a fee structure

How you communicate your new offering (both internally and externally) and transition select clients, reach out to prospects, and measure success over time are critical to the implementation of your digital advice offering:

  • Create your messaging platform or story
  • Develop a marketing and business development plan for prospective clients
  • Define a transition process for existing clients
  • Document implementation plan
  • Establish success metrics

Test your knowledge

How much do you know about digital advice? Fidelity research sheds light on various aspects of a digital advice offering that may help in your decision-making.

What percentage of Gen-X/Y millionaires say their advisor is more valuable as a result of his/her use of technology?

Next

Making life easier for clients can help increase the likelihood of referrals, and streamline interactions. Advisor use of technology is especially important for younger millionaires.2

How many advisors plan to deploy a digital advice platform?

Next

Improving the client experience, serving smaller accounts efficiently, and targeting new types of clients are just some of the reasons that firms are looking to deploy a digital advice solution.3,4

What type of clients do advisors plan to target the most with digital advice?

Next

From Gen-X/Y to Baby Boomers, most advisors are looking to improve the experience for existing clients.1

What is the top concern of firms that are thinking about a digital advice strategy?

Next

Advisors can use this opportunity to remind clients and prospects of their value proposition, and articulate how this will enhance the experience of working together.1

What is the top feature that firms are looking for in a digital advice solution?

Finish

By streamlining the account opening process through a digital advice solution, it creates a better and easier experience for the client while simplifying the process for advisors.1

Take the next step by checking out the Digital Advice Roadmap and Fidelity's AMP offering.

Learn more about the Digital Advice Roadmap and Fidelity's AMP offering.

"The competitive wealth management firm of the future will have figured out how to combine high-tech with high-touch service to deliver an optimal offer at the right price point to the right client segment, while meeting the firm's profitability goals."

Aite Group

*Source: "The Race to Easy: Reevaluating the Wealth Management Technology Strategy," 2015.

Additional resources

For additional insights to help you potentially implement digital advice solutions at your firm; take a look at these resources from Fidelity

Harnessing Technology Effectively

Case Studies

 
 

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