Exploring the impact of technology on professional financial planning
We live in a world that’s being constantly reshaped by technological advancements and shifting consumer preferences. In an age of technological innovation, Canadians are facing an increasingly digital financial marketplace that’s transforming how they manage their money and access financial advice.
Digital innovation is also having a substantial impact on the financial planning profession – and providing an important opportunity to make financial advice accessible to more Canadians.
That’s why FP Canada™ and the Institute of Financial Planning (the Institute, previously the IQPF) are teaming up on the Fintellect Initiative, to explore this key question:
How do we leverage new and emerging technologies to enhance the practice of professional financial planning and increase its accessibility for Canadians?
Through accessible online platforms and user-friendly applications, the financial planning profession can ensure Canadians from all walks of life benefit from financial advice. This increased access not only fosters greater financial literacy but also empowers more Canadians to make informed decisions about their financial futures.
But it’s important to understand technology’s impact. Trusted human relationships are still paramount for both consumers and the financial planning profession, so leveraging technology to further strengthen those bonds is the key to success – for both Canadians seeking help, and the financial planning professionals serving as their partners on the journey to lifelong financial wellness.
About Fintellect
Phase One of the Fintellect Initiative established a task force dedicated to exploring the impact of technology on professional financial planning. The task force was composed of a group of stakeholders with a diverse range of experience across the financial planning profession.
Our Journey
Phase 1 – Discovery and Planning
As part of phase one, FP Canada and the Institute engaged a series of interactive workshops with the Fintellect Task Force.
Dozens of additional stakeholders were also consulted for each workshop, including independent financial planners and academics in finance research, along with representatives from financial institutions, technology companies, consumer protection groups, regulators, and associations. Access the Phase One Report to learn more.
Phase 2 – Research and Engagement
In Phase Two, Fintellect will undertake detailed research in the key priority areas identified during Phase One. Active engagement with stakeholders will take place to discuss feasibility and guidance for the next steps.
Phase 3 – Turning Insights into Actions
Fintellect will prioritize the recommendations as the research reveals specific trends and insights. This final stage oversees the implementation of strategic measures to integrate Fintellect’s action plans into the strategies of key stakeholders such as industry firms, regulators, credentialing bodies and governments.
Next Steps
Based on Phase One discussions, there are some concrete steps that FP Canada and the Institute can take to work towards key outcomes. These include but aren’t limited to supporting the development of reliable advice channels, delivering the training planners need to leverage technology, and championing the development of appropriate regulatory frameworks.
In the months ahead, FP Canada and the Institute will launch a series of research initiatives that will allow both organizations to further explore the identified key outcomes. A detailed research plan is under development to guide and prioritize the activities of Phase Two (investigation), which we’ll follow up with Phase Three (implementation).
Following the Fintellect Phase One report published in February 2024, FP Canada and IPF, through Fintellect, are laying the groundwork for evaluating the vast number of AI and Fintech opportunities and relevant challenges that Canadians might face. The Fintellect initiative will be underpinned by research and investigation efforts towards the following outcomes:
Technology can and must improve access to financial planning. Leveraging it can reduce the barriers and cost of financial planning for Canadians and help planners provide services across demographics, including among those that are under-served.
FP Canada and the Institute have a role to play in influencing the impact of new and emerging technologies and the resulting implications for consumer protection, including access to Canadian’s personal data.
Financial planners must continually adapt and learn. That means embracing new and evolving technologies and finding ways to use technology to reduce, automate, or eliminate routine tasks so planners can focus on the human dimension of financial planning.
Follow FP Canada on social media to stay in the know as we look forward to sharing insights and progress as the Fintellect journey unfolds.
