Financial planners need to embrace technology to better serve their clients, as digital tools can enhance the effectiveness and efficiency of their services, as well as increase their appeal to more technology-savvy investors such as the younger generation.
Citing an example, Securities Commission Malaysia chairman Datuk Seri Dr Awang Adek Hussin said according to a survey by the Institute of Capital Market Research, millennials and Gen Zs are more inclined to use robo-advisory services, but as their portfolio grows, they would prefer to interact with a human advisor.
"This suggests that robo-advisory services can be complementary tools to financial planners to get more people to start investing early, and subsequently, planners can deliver more personalised services that require a human touch.
"This is especially as investors’ needs evolve and grow more sophisticated over time,” he said in his keynote address during the Malaysian Financial Planning Council (MFPC) Professional & Ethics Forum 2022 that took place recently.
As such, Awang Adek said financial planners should not view robo-advisory services and other technology-driven services as their competition.
"By attracting new investors, they can co-exist with services that offer more bespoke advice. As the pool of investors grows with more diverse needs, this will ultimately feed into your businesses as well as the wider industry,” he said.
He added that in the current age of digitalisation and disruption, it was heartening to note that the MFPC was rethinking its e-learning management system, and hoped that the move would also support the growth and promotion of Shariah financial planning to local and regional markets.
"In order to promote financial planning as a career path, the industry has received funding from the Capital Market Development Fund of RM1.5 million (US$340,445), as well as funds for Capital Market Services Representative’s License scholarships.
"I urge practitioners and MFPC to utilise this funding wisely to develop high-quality and professional financial planners of the future,” he said, reported Bernama.