Jason talks to Joel Bruckenstein known as the "godfather of advisor technology" in the US. Joel is the President of Technology Tool, a well-known consultant and writer in the financial advisory technology space. Joel is the President of Technology Tool, a well-known consultant and writer in the financial advisory technology space. The episode focuses on Joel's journey and how technology for financial advisors has evolved over time.
Episode Highlights
- 01:26: Joel shares that he spends a significant amount of time consulting, evaluating new products, and engaging with advisors.
- 04:13: When Joel began his journey, the wire houses, and many independent broker-dealers (IBDs) predominantly used proprietary technology solutions. Independent advisors had limited options in terms of technology.
- 09:41: The cost of financial products, such as mutual funds, was much higher 30 years ago, and ETFs were not yet available.
- 11:56: Jason shares a common observation that many outsiders, including technologists and engineers, often believe that technology will replace advisors and reduce their numbers.
- 17:14: Jason agrees with Joel's observations and highlights the proliferation of niche solutions that address specific planning issues, which has become more prevalent over the last decade.
- 24:16: Joel highlights how smaller advisory firms may outsource their technology needs to specialized providers.
- 29:27: Joel suggests that AI can be leveraged for more straightforward tasks, such as generating drafts for blog posts and even assisting with email replies for routine requests.
- 34:52: People's satisfaction tends to be higher when they are not aware of alternative solutions or when they have limited exposure to different technology options.
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3 Key Points
- Joel reflects on how the landscape of advisor technology has evolved since he first started in the field.
- Joel and Jason discuss the common complaint among advisors about margin compression and increased competition in the industry due to technological advancements.
- Joel highlights the growing importance of data and AI in the advisory industry. He explains that data is like digital gold and can be leveraged for various purposes, including AI-driven insights and analytics.
Tweetable Quotes
- “It's essential to remember the technological context of the time when he started, as they were still in the era of DOS, with Windows emerging as a platform.” – Joel
- “Technology has completely transformed the way advisors do business, and he views these changes as positive. It has made advisors more efficient, allowing them to serve more clients and provide a better user experience for both their employees and clients.” – Joel
- “The financial advisory industry often takes longer to adopt technology due to its highly regulated nature.” – Joel
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