Are you keeping up with the latest trends in financial advising? Learn more about the changing landscape and discover opportunities to gain a competitive advantage.
The financial planning industry is notoriously slow at implementing new technologies. There are many reasons for this slow adoption: strict compliance regulations, cybersecurity concerns, high costs and more. However, intrepid advisors stand to gain a significant competitive advantage by hopping on the technology train early.
Asset allocation strategies have evolved from domestic stock and bond allocations in the 1970s. New frameworks for portfolio construction—which focus on risk-allocation rather than asset allocation—place greater emphasis on the use of alternative assets to diversify away from increasingly correlated risk centers.
Technology, along with recent changes in regulation, is opening doors to make certain alternative investments, including private placements, more accessible to advisors. Technology now allows advisors to browse alternative investments online and search for those that best fit the needs of their clients.