<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Advice provided by financial planners has the potential to impact the financial and emotional well-being of clients and is particularly important in a world struggling to deal with COVID-19. Despite the outcomes of quality financial planning relationships, there is little direct evidence to support the importance of technology in the financial planning setting, Previous research has emphasised the importance of technology in other fields, although not in relation to financial planning. This research investigates the impact of technology on financial advice value, measured in a survey of clients and financial planners regarding factors of technology, communication, trust, and investment returns. A questionnaire was developed based on previously validated scales. Ratings for the factors were compared between clients and financial planners, with financial planners found to underestimate their client’s confidence in their process, and also underestimate the importance of communication to clients, The results indicate that clients value investment returns above the financial planning relationship, and that financial planners value the relationship above investment returns, This research contributes to the financial planning and technology literature, provides a foundation for future research, and provides support for the importance of communication and technology in professional relationships such as in financial planning.</p>
</abstract>

Advice provided by financial planners has the potential to impact the financial and emotional well-being of clients and is particularly important in a world struggling to deal with COVID-19. Despite the outcomes of quality financial planning relationships, there is little direct evidence to support the importance of technology in the financial planning setting, Previous research has emphasised the importance of technology in other fields, although not in relation to financial planning. This research investigates the impact of technology on financial advice value, measured in a survey of clients and financial planners regarding factors of technology, communication, trust, and investment returns. A questionnaire was developed based on previously validated scales. Ratings for the factors were compared between clients and financial planners, with financial planners found to underestimate their client’s confidence in their process, and also underestimate the importance of communication to clients, The results indicate that clients value investment returns above the financial planning relationship, and that financial planners value the relationship above investment returns, This research contributes to the financial planning and technology literature, provides a foundation for future research, and provides support for the importance of communication and technology in professional relationships such as in financial planning.

Technology will Save Financial Advice

Financial Planning Research Journal

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Technology will Save Financial Advice"}

Advice provided by financial planners has the potential to impact the financial and emotional well-being of clients and is particularly important in a world...

Age	<25	25-35	36-50	51-65	>65
Adviser	3(3.33%)	37(41.11%)	36(40.00%)	13(14.44%	1(1.11%)
Client	1(1.54%)	22(33.85%)	21(32.31%)	18(27.69%)	3(4.62%)
Combined	4	59	57	31	4
Percentage based on Responses (155)	2.58%	38.06%	36.77%	20.00%	2.58%

Gender	Male	Female
Adviser	76 (84%)	14(16%)
Client	35 (54%)	30 (46%)
Combined	111	44
Percentage based on Responses (155)	71.61%	28.39%

Component - Attitude towards	Items	Source
Communications	6	Graham (2003)Kaufmann, Weber & Haisley (2012)
Cash Flow Management	11	Lea, Webley, Walker (1995)Galperti (2019)Thaler & Shefrin (1981)Muraven (2010)
Trust	3	Sharpe, Martin, and Roth (2011)
Investment management	7	Roszkowski and Grable (2009) Weber. Siebenmorgen, and Weber (2005)
Financial Literacy	12	Stoughton, Wu & Zechner (2011)Bianchi (2018)Lusardi & Mitchell (2011)Lusardi & Mitchell (2017)Lusardi (2007)Bae & Sandager (1997)
Risk Profiling	8	Van de Venter, Michayluk & Davey (2012)Fehr-Duda et al (2010)
Retirement Planning	1	Kemp, Rosenthal & Denton (2005)
Financial Planning in Practice	3	Stawski, Hershey, Jacobs-Lawson (2007)
Coaching	2	Dubofsky & Sussman (2009)

Technology will Save Financial Advice

Published Online: Mar 15, 2024

Page range: 23 - 42

DOI: https://doi.org/10.2478/fprj-2021-0003

© 2021 Nat Daley et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

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Participants in terms of age

Participants in terms of gender

Sources used for the survey development