Technology and innovation are inherently deflationary. And if you’re a business owner in today’s environment, here are a few reasons you cannot afford to miss out on incorporating technology into your practice:
1. Reduced staffing costs
Digital services and software are almost always less expensive than their non-digital alternatives.
Specifically in today’s environment, staffing is more expensive than ever. According to USA Today, college graduates expect to make more than $100,000 after graduation. Though the reality is that most will make about half that number.
While salaries themselves still aren’t keeping up with inflation levels, the expectation from employees and future employees continue to rise. And employers are feeling the pressure.
2. Increased transparency
Transparency is one of the most important ways for businesses to build trust with their clients. In fact, it’s one of the primary reasons that so many payments companies are going digital.
A recent survey conducted by PYMNTs found that 56% of CFOs said improved transparency is an important outcome of the digitization projects they plan to implement in the coming year, with 13% reporting it’s the most important outcome.
“Without transparency, there can be friction surrounding payments and communication between providers, between firms and with end customers.”
3. Increased productivity
Finally, technology solutions’ aim is to provide its users, in this case businesses, their partners, and their clients, with increased productivity.
Rather than business owners and employees regularly needing to learn new things to keep up, the solution should, when designed well, take care of many in-between steps for you. Essentially, technology platforms help you get from point A to point B, much faster, more efficiently, and with less error, than before.
Additionally, automating what can be automated gives business owners the time and space to focus on what cannot be automated, such as building relationships with clients and partners.
Transforming your business through AI technology
AI, as all technology and innovation, is also inherently deflationary. AI technology specifically is most valuable for advisors when operating at scale. It allows business production to scale efficiently, meet current demand and future demand, without increasing in price.
In fact, businesses using AI technology can see an instant reduction in certain cost areas. One area in particular is training. According to Cathie Wood, AI training costs are dropping 40-70% annually.
According to Wood, “AI is likely to transform every sector, industry, and company during the [next] 5 to 10 years.”
How financial advisors can use tech to control inflation.
For advisors who are willing to make the jump into technology services, the result will be a positive one.
But implementing technology to help better manage your current business is only the first half. The second, and perhaps even more important half, is that it provides an opportunity to expand into an entirely new area of business, to an entirely new client base.
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