Ben Henry-Moreland wrote an interesting post, Advisors are Becoming Better (Not “Faster”) with Advances in #AdvisorTech, about the recent history of AdvisorTech for the Kitces blog. In it, Ben examines the shift over the last 5 years from tools that primarily made advisors “faster” (e.g. CRMs, Workflow Support) towards those that make advisors “better” (e.g. Advice Engagement, Specialized Financial Planning). Ben points out that tools which make advisors “better” typically require advisors spend more servicing clients rather than less. This necessarily limits the number of “better” tools advisors can deploy. There are 3 costs that advisors must consider:
- The financial cost of the tool
- The cost of the time needed for the advisor to become proficient in the tool
- The cost of the additional time advisors must spend with clients where the tool is useful
The growing proliferation of tools makes deciding which ones to adopt all the more difficult. The implications are that:
- The rate at which advisors will adopt new tools will slow.
- Because of the opportunity costs associated with adopting any tool, churn will likely increase if benefits are not realized early on.
- Niche tools will have a difficult time breaking out
Knudge stands out from the crowded field of tools because it shatters the dichotomy of “better” or “faster.” Knudge makes advisors both “better” and “faster.” Here’s how:
- Reduce client admin by 80%: By taking the management of client action items off of advisors’ plates, Knudge reduces the time advisors and their teams spend following up with clients by 80%.
- Clients get 3X more done: Advisors that incorporate Knudge into their workflow see task completion rates more than 3x the baseline. When clients complete the tasks required by the financial plan, outcomes improve.
- Higher service levels at scale: Knudge allows advisors to manage more aspects of their clients’ financial lives without a corresponding increase in time spent per client.
There are 3 fundamental aspects of our platform that permit Knudge to be the unique “faster” and “better” solution for advisors:
- The automation of task generation, notifications, and reminders for individuals and groups
- Tying messages from any communication channel – email, text, or app – to a task
- The ability of clients to receive the core benefits of Knudge without needing to register
Choosing technology in a space crowded with options can be daunting. Advisors may realistically integrate only a few tools alongside their core financial planning software. It’s critical, then, for any solution to maximize the value to advisors, balancing the investment of time and resources against the benefits provided. Knudge is unique in that advisors are not forced to make a trade-off between “better” and “faster”, but delivers both. It also allows advisors to maximize the efficacy of the “better” tools they do adopt, increasing their returns on that investment.