Predictive analytics involves leveraging data to anticipate future trends and occurrences.
It uses existing information to anticipate potential paths and outcomes, enabling advisors to make informed decisions.
And if you’re not using these tools, you’re behind the crowd!
So let’s dive into how it actually help advisors 👇
Advisors can build more trust
What if advisors could reassure their clients with more precision?
This is what predictive analytics help them do!
Here are 3 examples:
Predictive analytics can be used by financial advisors to identify high-risk investments and make informed decisions.
For example, an advisor may use predictive analytics to analyze data such as market trends, customer behaviors, and historical performance to determine which investments have higher potential for returns and which investments may be more risky.
Predictive analytics can also be used to detect potential fraud.
Using predictive analytics, financial advisors can detect suspicious activity before it occurs, allowing them to take preventive measures.
Predictive analytics can be used to automate certain processes, such as portfolio rebalancing.
By automating these tasks, financial advisors can save time and resources, allowing them to focus on providing better services to their clients.
Overall, predictive analytics can be a useful tool for financial advisors to build trust with their clients. It can provide a wealth of insights into their clients’ financial situations, help create a more tailored customer experience, and help advisors stay ahead of market trends and changes.
Remember: Predictive analytics is all about turning data into an informed and human conversation!
Enhance the customer experience
What defines a great customer experience?
A great experience needs to be:
- Clear
- Quick
- Relevant
- Personalized
And when we look at the evolution of financial advice, a lot of it depended on the advisor knowing all this information. So clearly, information would sometimes slip under the cracks.
Especially that the government changes their rules, regulations and taxation levels every year, wouldn’t it be great if advisors could be proactive instead of reactive?
Thanks to predictive analytics, advisors can look back at their data and say:
“Hey John, based on the latest changes, this is going to have an impact. You might have a tax bill that you don’t see coming. I think we should get your accountant on board.”
Remember: Clients always want their advisor to know them. They don’t want to have to call to explain something that happened to them. The advisor should already be anticipating that or at a minimum, be aware.
Go above traditional advice
Predictive analytics is not just to be able to say, this is what your return is, this is what your risk, this is where you are on the efficiency curve.
You want to bring things that people don’t take into account!
“Oh, Jasmine’s mortgage is about to take off finish. Well, I need to make sure that I get reminded to give her a call because she’s going to have excess cash flow available.”
Before the rise of predictive analytics, advisors would need to see these triggers, remember them and take action.
But now, advisors can focus on building client relationships instead of obsessing over things they should keep an eye out for.