Essay About Financial Advisors And Online Advising Technologyintroductioni

Financial Advisors and online Advising Technology
Date: October 20, 2015Subject: Financial Advisors and Online Advising TechnologyIntroductionI propose to conduct research to gather information on the problems financial advisors are facing in competing with new technology and how they are adapting to the change. As a finance major, anticipating a career in financial advising, research will provide an applicable view into the evolving technology-driven challenges faced by the financial advisors who operate as a traditional brick-and-mortar business. I intend to use this research to hypothesize new solutions that I may recommend to professionals in the finance field and perhaps utilize myself along my career path. SummaryThis project identifies the threat facing the financial advisory industry by online computer models and algorithms used to inexpensively tailor portfolios for individuals and businesses. Evidence of this growing problem very prevalent online; with a new class of online companies that are marketing to consumers either as pure technology platforms, or as a combination of online tools and personal advice. Wealthfront, which manages over $2.6 billion in client assets, is one of the many companies that use an online technology platform to manage and diversify portfolios as well as retirement and non-retirement accounts. These companies advertise financial advice as convenient and affordable for consumers by automating the planning and investment process. As younger tech-savvy adults begin to assess their finances and these internet-based companies continue to grow, the livelihood of traditional brick-and-mortar advisors is being increasingly threatened.PlanA better understanding of the evolving internet-based industry and the affect it is having on the traditional style of financial advising can be grasped by conducting primary and secondary research. Gathering information on the way advisors have evolved to meet the increased competition, and to what extent they have been affected by it, can then lead me to realizing possible solutions. I will collect my primary research by contacting professionals in the finance industry, including my father who has been an advisor for 25 years. For my secondary research; I will use the resources at the MSUM library and by siting credible websites.