With the emergence of tech-backed advisory platforms, there's a common perception that MFDs/RIAs may lose relevance in the times to come. However, noted author Carl Richards has a completely opposite view.
At the Cafemutual Ideas Fest 2022, Richards said that the value of a 'real' financial advisors has never been as high as it is now.
"The value of real financial advisors has never been higher. We often wonder about our value due to emergence of new technologies. But with the world getting shrouded with uncertainties, people have questions. They need help," he said.
This rise in value, as per Carl, is the result of an increase in transparency. "Earlier, it used to be really challenging for investors to figure out the true value of financial advice. But now that every information is available at their fingertips, transparency has gone up and so has the demand for financial advisors," Carl said.
The positive developments for RIAs and distributors do not end on the demand side. Technology has also opened up ways to reach out to more prospects and serve them better.
Carl said that technology has opened up a virtual channel to reach out to more prospects and expand the business. "The ability to work virtually, rise in demand for good financial advisors and increased transparency are among the positive changes for industry in the last couple of years," he said.
'Solo vs collaboration'
When asked if RIAs/MFDs should look for collaborations instead of working alone, Carl said that collaborations can be a good option if one can find the right partners. "It helps when we can find partners whose skills complement ours," he said.
More importantly, Carl said that it's crucial to maintain a corporate working process right from the very start, be it solo venture or a collaboration. "Just stick to the system and processes. Every time you do something for the second time, try to look for a more efficient way," he said.
