Fee compression has become a hot topic in the advisory world over the last few years. With clients pushing for added value, and advisors pushing back on compressed fees, it feels as though the monetary gain for advisors has come to a standstill. The reality, though, is that fee compression truly shouldn’t be at the top of your advisor worry list, as it can easily be beaten implementing one simple thing into your practice.
The key? Technology.
You may be wondering how, the thing that seems to be adding to the fee compression plight, can actually help beat it. As the saying goes, if you can’t beat ‘em, join ‘em. Contrary to industry belief, technology isn’t here to take away from advisors, but rather enhance the value they bring to the table.
Current day client-advisor relationships are part technology-based and part human-oriented; not in a human vs. tech way, but rather a marriage of the distinct attributes that the two bring to the table.
Evolving consumer behaviors and innovative technologies are rewriting the relationship roadmap for clients and advisors. With clients becoming accustomed to highly individualized and tech-oriented experiences across every facet of their lives, advisors who are running form technology rather than embracing it, are the ones who are unable to justify their fees.
The fact of the matter is that your clients will pay for the value you bring to the table, and how much value do you truly bring if you’re not willing to meet them where they’re used to being met?
A few advisors shared their thoughts on pricing and fees surrounding this hot topic:
Implementing technology into your firm can be frightening, especially since it’s gained such a falsely negative rep within the industry. To get started, you first need to find the technology that’s right for both you and your clients – and we’d love to help.