There are many different platforms and strategies that you can leverage to manage your wealth. Since the emergence of digital wealth management, new technologies have been developed to automate financial services. For instance, artificial intelligence tools like robo-advisors help clients make and track investments across diverse industries. 

Digital wealth management systems are currently challenging traditional wealth management strategies and have increased in popularity over the last few years. In fact, 41% of surveyed generations said they would consider using a robo-advisor. 

Meanwhile, in traditional wealth management, CERTIFIED FINANCIAL PLANNER™ professionals organize and manage clients’ portfolios. By learning about the differences between digital and traditional wealth management, you can decide which — or if both — will best serve your financial goals.  

How does digital wealth management compare to traditional wealth management? 

The primary goal of digital wealth management is to make investments accessible to all demographics. Those can include young professionals and the larger middle class. Digital platforms are often free, and robo-advisors only charge a small fee for services. Most digital wealth platforms also do not require a minimum income or asset amount in order for clients to be advised by a robo-advisor. 

Digital wealth management tools can: 

  • Automate service — Clients with basic questions about their accounts can ask their questions over the phone or over the internet. In addition, artificially intelligent digital chatbots can aid clients when they have questions, with little to no wait.
  • Increase accessibility to information — Existing digital platforms can easily integrate with third-party data providers, which give clients real-time insight into their investments.
  • Offer quick portfolio recommendations — Digital wealth management systems can scan client portfolios and automatically recommend potential changes. Bots can make these recommendations according to clients’ preset goals. 

On the other hand, traditional wealth management advisors offer their own set of benefits, including: 

  • Better flexibility and customer service — You can meet with your financial advisor and share your concerns and questions with them in a private, one-on-one environment. Your advisor can consider your emotions, values and personal goals to establish a wealth management plan accordingly.
  • Trustworthy security — Traditional wealth management firms offer layers of policies and practices to best protect your assets in the event of a natural disaster or financial crisis.
  • Hands-on control — In a traditional wealth management environment, your financial advisor will manually and deliberately make financial decisions on your behalf and while keeping your financial goals in mind.

Talk to a ProVise CFP® professional about digital vs. traditional wealth management

Are you considering the differences between digital and traditional wealth management strategies? At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about your wealth management plan? Contact ProVise today to schedule a complimentary consultation.