India's millennial population; that is people born after 1982, are 400 million plus and counting, meaning one third of the country's population. It is more than the entire population of US & UK combined. While all major countries are ageing, India is becoming younger, we are set to become the youngest country in the world by 2020, with a median age of 29, and with 64% of our population in the working age group, said India's envoy to Sri Lanka, while delivering a lecture on foreign policy in Colombo, last year.

This data illustrates the change that's taking place and defines the future, we will be living in a country dominated by young people. And it also highlights the need of the hour, to direct our focus on the new cadre of people, the Millennials, our next client base.

The Millennials exhibit certain unique characteristics and have some distinct requirements, and one of the most prominent among these characteristics is excessive reliance on Technology. This is the first generation of people who have have grown up with computers, and experienced the evolution of mobile phones, first hand. They book train tickets, movie tickets and hotels online, they pay their electricity bills online, they date online, they study online, they purchase their clothes, shoes and even groceries online, precisely they are enveloped within technology. The millennials tend to heavily rely on technology as against their senior counterparts, who form our major client base today. Now we need to gear up and equip ourselves for our future client base, the tech savvy Millennials.

The implications of this extreme penetration of technology are varied for our business. Let's learn how the new wave will impact us and how it will change the way we do business.

• Traditional instruments: The good part about invasion of technology is the Millennial generation is open to newer and modern investment products. This is because of ease of investment in modern products like Mutual Funds and increasing awareness, both due to technology. So, you would not have to stress yourself out in convincing the client to look beyond their bank FD and traditional life insurance policy.
• Vigilance: People check for reviews before going out to a restaurant for dinner, or a movie, a hotel, or even before buying a new night cream. So, they would obviously seek for reviews before buying an investment product. Hence, you must be very careful in sharing information with your young clients, as they will research and check the facts. In this view, the role of your website also becomes paramount. Many advisors have a website for the sake of having one, you know just in case someone cross checks, but this approach may not work for too long. Your website is a gateway to your business, it gives you an opportunity to talk about your services, products, your business ideology, your USP, etc. The probability of your prospective young clients visiting your website is high, plus it will also work as an efficient lead generation mechanism. Hence your website must be maintained and be drawing out the best of your business at all times.
• Social Media: The Millennials are also a set of social media fanatics. So, when your clients are on Facebook, Linkedin, Twitter and WhatsApp; Social Media marketing becomes inevitable. Social Media will probably be the biggest platform to get leads, as well as to disseminate information among existing clientele. Like your website, content management on your social media pages too becomes pertinent.
• Robo Advisory: Another aspect about increased use of Technology which exercises a significant impact on the advisory business is inclination towards Robo Advisors. Since the millennials trust Technology, there are chances that they would bend towards Robo Advisors. Robo Advisors pose as a strong opponent, but you have this one element which can help you beat the competition, and that is 'personal touch'. NJ's technology initiatives, like various desks, online tools, E-Wealth account, facilities like Partner Initiated Transactions, etc., are all aimed at eliminating your role from the redundant tasks, and empowering you with more time to spend with people. You can conquer your Robo rivals by offering not just an overwhelming investing but also a superior technological experience.

The above are a few among the many offsprings of the technological wave that has already hit. The Millennials, our next target market, have accepted technology with open arms, and so should we in order to survive and grow. Technology offers an impeccable opportunity for us to prosper in our venture, let's not let it go.

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There has been a spectacular rise in e-commerce industry and it has disrupted many traditional businesses. There is virtually no industry or market where it's impact cannot be felt or foreseen today. In the financial services industry, the emergence of a new group of digital wealth advisory/management firms offering automated investment advice services has today become one of the debated topics. There is one view that such firms may revolutionise distribution and advisory practice. Yet many experts have discounted and labeled this movement as unproven and believe that its' solutions are no match for a human, personalised investment advice. In this context, we want to explore the emerging challenges and how we can sustain and indeed grow our business in this rapidly evolving digital age.

The Evolving Market Place:
Let us take holistic, template view of the evolving industry. We may thereby segment the fraternity of financial advisors /distributors into the following three groups...

1. Fully Automated: These firms provide no human interface and work solely on softwares. Investors would register online on website for advisory /distribution related solutions for KYC compliant investors. Often offline verification / bank mandates are requested for enabling online transaction facility. Typical investor would be young, tech-savvy individual yet not serviced by traditional IFAs. They rely on smart visuals, packaged solutions and ease of use for investors to grow their customer base.
2. Financial Advisor (FA) Assisted: The segment is a combination of both technology and human interface in equal measure. Technology is smartly used for doing many activities /processes and providing value-added services to clients. The human interface is primarily involved in acquisition, relationship management, custom financial planning and behaviour orientation. The transaction process, reporting, customer service, business MIS, etc. are all automated and technology driven as also portfolio advice and management to some extend. A typical investor is difficult to define as they consist of HNIs to retail customers.
3. Traditional IFAs: These IFAs rely almost entirely on human interface and a large number of processes involve manual intervention. They are primarily dependent on physical branch networks. A large amount of time and efforts is spent on non-value adding services. While such IFAs do have a mixed clientèle of retail and HNI customers today, it is difficult to foresee profitability and growth for them in this model unless the clientèle is primarily HNIs and super HNI who would be more comfortable dealing with professional advisors face-to-face.

Widening Horizons:
The digital age is here and it is going to stay. E-commerce in the digital age is finding resonance and favour from not just investors but also regulators and government. With the government's focus on Digital India and a rapidly evolving financial services landscape, it is more likely that the transition will only continue. There has never been so many smart phones, ease of payment options and entrepreneurship spirit present together ever, each complimenting each other to create innovations to serve customers. It is really exiting to see the pace of change as it is all benefiting the consumers in the end.

The widening horizons of e-commerce enhances the ability to offer multi-channel strategies to industries and organisations. This can potentially reduce costs and improve customer management. A single organisation, multi-channel approach is fast becoming dominant. To be successful, we must all offer a positive client experience, problem solving solutions and take a unified view of the client's overall relationship. E-commerce must also be used to expand client options and offer broader product choices. Organisations which have existing clientèle, a diversified product basket, unified portfolio view, automated & integrated transaction platform, backed with effective customer servicing model cannot be easily replaced by digital entrants. Given the abysmal levels of financial products penetration in India, the markets can only expand hereon and every existing player and new entrant will have their own fair share of the growing cake.

Meeting the Challenges:
The main objective to consider here is what strategies will wealth managers /financial advisors adopt to stay competitive in the e-enabled environment? What value can they add to their clients? This concerns will only grow as we progress in the digital age and as industry evolves and matures. The emergence of the digital age has made clients more inquisitive, experimental and thus less loyal to traditional channels of distribution. The client's preferences and habits are also changing. Today the clients want solutions not products, ready access to information not processes and desire to act 'now' rather than to wait. These are changes which have big impact on the business of financial advisory /product distribution.

How can a traditional financial advisor meet these challenges? There are few things that need to be done with priority, if not in a mission mode ...

1. Making the strategic choice and commitment: It begins with defining your business model and approach. The strategic choice has to be made of moving business to the digital mode or keeping with the traditional ways of business. That conviction and commitment has to be come before anything else is to be done.
2. Adopting technology & automation: Next is your understanding and adopted of technology and automated processes in your organisation. As advisors, you need to identify which processes can be automated and which processes shall you manually focus on. Defining the processes is crucial as it will provide a ready template for your firm to work accordingly.
3. Pushing Customers to Automation: If the choice to go digital has been made, then it is also the time for your customers to go digital. In the age of Facebook and Flipkart, there would hardly be any customers who would not have smart phones or be tech-savvy. It is only a matter of perspective & attitude when it comes to wealth management and use of technology for same by customers. A plan for shifting existing customers on the digital platform is to be made while for new customers, the enrollment should ideally be in the digital mode.

Customer Value Identification:
Surviving and growing in the digital age also demands proactive actions and marketing by the advisors to their customers. The need is to highlight the value added services on offer to customers. In absence of this, their will be some risk for customers getting attracted to other digital entrants. If this idea looks stretched at the moment, we should at least accept that the customer, in absence of knowledge of our services, would be more prone to being fished by someone else highlighting his/her services. Your service value identification by customers is also important when we are trying to push the customers to the digital platform.

The question now is – what is my value proposition as a financial advisor in this digital age? The answer for NJ Wealth Partners is very simple and can be found by bit of soul searching ourselves. We would just list the elements constituting our value proposition without going too much into details...

• Consolidation / aggregation of entire portfolio for family easily accessible
• Access to a rich, diverse basket for financial products and asset classes
• Paperless /online transactions in financial products
• Value added services of proper financial need assessment (financial planning) and portfolio management
• Effective and efficient customer query /complaint management

Adopting Technology in Business Practices:
The challenge is also for the advisors to make activities process & technology driven rather than keeping them manual. The idea is to use maximum system tools which are available on the go to optimise and scale their practices. NJ Wealth Partners can effectively use many automated services offered by NJ like CRM, Financial Planning, Employee Management, Subscriptions, Customer Care in their business. They can also potentially do wonders for their business if clients switch the the E-Wealth platform and MARS. These few and many other services by NJ can also help Partners to improve their value proposition greatly.

Branding Your Differentiation:
Marketing or branding too has evolved enormously with changing times. Financial advisors are unfortunately not really keeping pace with the trends. In the digital age, your identity begins with your website. Having a website is a must for any advisor who presents himself as a seasoned professional. There is no meaningful shortcut to avoid this requirement. Next is the question of marketing and branding your business, products and ideas in modes, ways and channels which are relevant to the customers. While the need for traditional marketing through physical literature is still very relevant today, the advisors today now must use the the new channels of communication using digital formats like videos & images. These formats can be effectively circulated through your mobile phones, email accounts and websites. In combination with websites, they can be effectively used to enrich your live content for visitors. At NJ we have kept pace of this need for branding differentiation with our offerings in BizMall like WebNest and MCS.

Conclusion:
The following are some key observations...

1. Digital entrants combine the use of packaged solutions, presented with simplified user experience having ready online access backed with increased transparency and a largely automated process to offer automated advice directly to investors.
2. Emerging models have potential to make 'advice' for the mass market feasible and a certain segment of investors will find value in them. The advice varies from standardized to customised depending upon the complexity of automation.
3. The changes taking place are here to stay as is the fact with many industries/businesses today. So traditional players now need to determine if and how they want to approach these changes.

The emergence of digital entrants into the wealth management space has now slowly gathering pace. It will be some time before they can actually start making an impact on the industry and investor expectations. Presently the scale and size is very limited but what is clearly visible to us the the experience of other industries and the emergence of the digital era and e-commerce, in general. The evolving trends in the market will ultimately benefit new and existing investors alike by providing better and innovative solutions through an improved client experience.

To survive and grow, wealth management providers can no longer rely upon customer loyalty only. The advisors working in traditional ways will have to make the choice of transitioning their non-core services /operations to automated modes while keeping their human interface skilled & informed. Further, investors too will have to be gradually pushed in the digital environment so as to avoid loosing them in future to any of the digital entrants. The good news for NJ Wealth Partners is that the platform is ready today for the digital migration of Partners and their clients as well. Effectively using the many services offered by NJ can help the advisors to start making the transition to be strongly competitive in the industry and also be ready for the challenges. But investors will have to be made to acknowledge & appreciate the value of this digital platform and infrastructure behind the Partner. We at NJ are aware of the emerging challenges are keeping pace to make our Partners stay as competitive and resourceful as ever.

“People will forget what you said, people will forget what you did, but people will never forget how you made them feel”

The job of a financial advisor is remunerative and thrilling, but highly challenging at the same time.

He is expected to be a repository of knowledge and abilities. We have been hearing the clichéd advisory skills and stress on polishing the advisor's skills in terms of acquisition of knowledge and certifications; brushing his portfolio management skills, accounting skills, business administration, tax planning, technology management, etc. However, while carrying out his roles, the most important skill required by an advisor is often overlooked, and i.e. interpersonal skills.

The advisor's business is service oriented, you have to deal with human beings. And in our business, building and maintaining relationships is equally important as generating sales. A financial advisor is like a slab of marble, the surface has to be glazed to bring out the sheen of the piece. Similarly, the interpersonal skills of the advisor should be polished to unearth his hidden civil skills.

Following are the few elements of interpersonal skills which should be smoothened to blow the lid off the financial advisor:

Listening: This is the most important skill required in a financial advisor. You have to be patient to what the client is saying, even if most of it is immaterial. You'll find the vital stuff within that conversation. “An advisor has to hear what isn't being said”. As an advisor, you have to interpret the expressions of the client, you have to figure out his needs and goals, even if he doesn't clearly mentions them to you. Because the effectiveness of his financial plan depends on all his material personal and financial factors, and they can't be omitted, so you have to listen carefully and not just hear what he says.

Communication: The effectiveness of your advice will depend on how effectively you communicate the same. Your speech must be assertive, so that the listener takes you seriously. You may enhance your content by narrating success stories of your clients. The client may not easily comprehend numbers or financial jargons at times, so your style of communication must be simple and easy to understand. On the whole, in order to create an impact of your words, it is vital to adapt an elementary yet powerful style of communication.

Sensitivity: An advisor should be sensitive towards his client needs and not his financial targets. Client's needs and goals must be on top of the priority list. You must speak in terms of his needs and seem sincerely interested in him, else he will not be able to trust you. He will engage with you only if he is convinced that you are genuine and would work in his interest. And this conviction will come only if you keep his needs at the center.

Personal Touch: Display of care and an element of personal touch can solve your equation with the client. By referring to him by his first name or if he is an elderly person, by his surname affixed with Mr. will be much more impactful than referring to the client as Sir or Ma'am. A call for wishing birthday or anniversary can also build your relation with the client on a more than professional level.

Convincing ability: You should possess the talent to be able to convince people. You are selling products and services, which might at times be resisted by clients. Because of someone's bad experience with mutual funds in the past, he may not be wanting to try his hand once again. So, you should be able to explain to the client, the probable reasons for his past failure, overcome his fear and direct his money towards the right fit of investments which may include mutual funds. You must also be able to convince the client that his life goals are more important than his lifestyle. He should be able to understand the fact that if his current lifestyle can result in a compromise on his future, he should immediately start cutting where possible. And building this thought process in the client's mind is not an easy task. You have to possess exceptional convincing ability for the same.

Etiquettes: People have a tendency to assume that someone who counts low on manners is equally low on the knowledge quotient. Manners are becoming very crucial for our business, since we have to tackle people from different cultural and religious backgrounds and its essential to stand up to their expectations as far as civic behavior and politeness is concerned.

Because of increasing awareness, plethora of investment options and advisors, our industry is becoming increasingly demanding. An advisor has to work on the product as well as it's packaging to be able to make it appealing in the eyes of the beholder.