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Hola, fintech fam! 💜

I'm writing to you from Guadalajara, Mexico, and I'm enjoying some work-cation time before the busy season kicks in.

Speaking of: The Fintech Is Femme Creator Summit lineup is here! 🎤

Get ready to learn from top-tier founders, CMOs, and creators in fintech and media who master storytelling to drive growth through content and community.

Join us on September 9 for an unforgettable experience featuring incredible speakers like:

• 💸 Anam Lakhani & Eve Halimi, Co-Founders and Co-CEOs, Alinea Invest

• 💸 Supreet Kaur, LinkedIn Top Voice Creator and Data & AI Solutions Architect, Microsoft

• 💸 Katie Perry, Strategic Marketing & Business Development Partner, Ursa Major Media

• 💸 Kerry Reynolds, VP of Marketing, Wave HQ

• 💸 Fell Ogden Gray, Chief Marketing Officer, Arizent

• 💸 Kim Rosenblum, Chief Marketing Officer, Betterment

…and 20+ trailblazing speakers.

This is your chance to learn from the best and elevate your career. ✨

📅 Grab your tickets now and check out the agenda here.

Now, let's dive into today’s story.

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INNOVATION

From Algorithms to Empathy: How Tech Is Humanizing Financial Planning

For years, financial planning was a service reserved for the wealthy.

Professional advice came with a hefty price tag, making it accessible only to those who could afford it. 

But today, that exclusivity is fading. 

Technology is transforming the industry, not just by making it more efficient, but by making it more human. 

Yes, you read that right—tech is helping financial planners connect on a deeper level with a broader, more diverse clientele. 

In an era when a massive wealth transfer is on the horizon, coupled with the rise of a more diverse generation of investors and high-earners, the need for tech to fuel inclusive financial planning has never been more urgent.

The Evolution of Financial Planning

Let’s take a quick look at where we’ve been to understand where we’re going. 

Historically, financial planning was dominated by the top 1%, leaving most people with little to no access to personalized advice. 

You were essentially left out if you didn’t have significant assets—often upwards of $500,000. 

This wasn’t just an economic issue; it was demographic, too. 

The financial planning industry has long been characterized by a lack of diversity—76.2% of certified financial planners (CFPs) are male, and 82.1% are white, with only 2% being Black or African American, 3% Latino, and 4% Asian, according to 2024 data from the CFP Board.

This limited diversity has hindered the industry’s reaching and resonating with a broader population.

But the landscape is rapidly changing, driven by demographic shifts and technological advancements.

By 2030, American women are expected to control a significant portion of the $30 trillion in financial assets held by baby boomers—a wealth transfer so massive it rivals the entire annual GDP of the United States.

But this wealth isn’t just shifting; it’s moving to a generation with entirely different values and expectations.

Gen Y and Gen Z, who now make up 47% of the U.S. population, are already inheriting $541 billion each year—30% of the wealth transferred annually, and that number will only grow.

These generations are more progressive, value-driven, and focused on social equality and diversity. 62% of Gen Y and Gen Z say it’s essential for their financial planner to demonstrate a clear commitment to these principles, whether through their online presence or direct interactions.

This shift in demographics and values is not just influencing who these younger generations choose as financial planners—it’s redefining the entire industry.

The demand for personalized, accessible financial advice is growing, particularly among historically underserved groups, such as women and people of color.

Significant disparities remain despite the rise of wealth tech platforms that democratize access to investing and wealth building. For example, 65% of low- and moderate-income working women are interested in investing, yet only four in ten are actually doing so.

This is where technology comes in as a game-changer.

Today’s tech tools allow financial planners to offer personalized, scalable advice tailored to each client's unique goals and circumstances, regardless of their income level.

This democratization of financial advice—one of the big promises of the current wealth tech revolution—won’t be fully realized until it reaches at least 50% of the population, particularly women.

Financial service firms, registered investment advisors (RIAs), and financial planning firms have a golden opportunity to tap into this global growth by extending their advice beyond the elite, unlocking economic opportunities across society.

Tech Is the Competitive Advantage

Millennials and Gen Z are not just open to working with financial professionals—they’re actively seeking them out.

A significant portion of Americans, including 71% of Gen Z and 72% of Millennials, admit that there are financial topics they want trustworthy advice on but aren’t sure where to find it. This presents a massive opportunity for financial planners, but you need to understand what makes them tick to connect with these younger generations.

One of the most significant shifts we’re seeing is the financial independence and agency that younger women embrace.

According to Merrill Lynch, 75% of women under 45 manage their own finances, and younger married women are twice as likely to be the primary decision-makers in their households. This presents a critical insight for financial planners aiming to build relationships with a demographic increasingly controlling their financial futures.

And let’s not overlook the financial clout these generations are bringing to the table.

Older Millennials are set to inherit a staggering $68 trillion. By forming relationships with these clients early on, financial planners can establish the trust needed to guide them in managing this wealth responsibly and laying the groundwork for a secure financial future.

And it’s not just Millennials—Gen Z, the generation coming up right behind them, wields an estimated $143 billion in spending power and is on track to surpass Millennial income levels by 2031.

Gen Z is also the most diverse generation in U.S. history.

Nearly half of Gen Z identifies as a racial or ethnic minority, with a quarter being Hispanic, 14% Black, 6% Asian, and 5% identifying as a different race or multiple races.

This diversity isn’t just a demographic detail—it’s a defining characteristic that influences how they interact with businesses, including financial services.

Wealth management firms that reflect this diversity and prioritize representation are more likely to earn the loyalty of this generation.

One of the most significant barriers to seeking financial advice historically is the belief that people don’t have enough money to justify hiring a financial planner.

This mindset is especially prevalent among Millennials and Gen Z. Technology is breaking down these barriers.

Today’s tech tools enable financial planners to deliver personalized, accessible advice tailored to each client’s unique goals, regardless of their income level. Two-thirds of Americans say a personalized financial plan based on their goals would be crucial in choosing a financial planner.

As Millennials and Gen Z increasingly dominate the workforce, the market for financial planning will only grow. Financial planners who leverage technology to deliver personalized, relevant advice will have a competitive edge in cultivating long-lasting relationships with these generations.

The key is staying on top of the trends that matter most to them—financial independence, diversity, or personalized service.

In a rapidly evolving landscape, tech isn’t just an advantage; it’s the advantage that will set successful financial planners apart. 

Financial Planning Meets Generative AI

So, how exactly is technology making financial planning more human? 

One secret sauce here is artificial intelligence (AI). AI-driven platforms can now analyze vast amounts of data to provide personalized financial advice tailored to each person’s unique situation.

What was once a luxury for the ultra-wealthy is now available to anyone with a smartphone.

Dani Fava, Chief Strategy Officer at Carson Group, is one of the leading voices in wealth tech championing this human-tech partnership. At Carson Group, Fava focuses on integrating cutting-edge technology into the advisory process, creating personal and meaningful experiences. 

According to Fava, technology should empower financial planners, not compete with them. 

“We find ourselves at a pivotal juncture in our industry, on the cusp of a transformative era,” Fava says.

“With generative AI poised to revolutionize scale, efficiency, and accessibility in ways previously unimaginable, financial advisors are set to become increasingly central to people's lives, rapidly expanding the number of clients they can effectively serve. 

Transparency will increase, consolidation will continue, and the remaining pivotal elements will be advisor brand strength and depth of client relationships.”

By automating routine tasks, advisors can spend more time building genuine relationships with their clients, understanding their needs, and offering truly resonating advice.

But AI isn’t just about crunching numbers. It’s also about understanding emotions. 

Nobel Prize-winning psychologist Daniel Kahneman found that 90% of financial decisions are driven by emotion, not logic. This insight is crucial, and some fintech platforms are now using AI to tap into these emotional drivers. 

By recognizing and responding to users' emotional states, these platforms help people make financial decisions that align with their values and long-term goals.

Margaret Hartigan, CEO and Founder of Marstone is a trailblazer in this area. 

Under her leadership, Marstone has developed tools that offer investing and guide users toward healthier financial behaviors by aligning decisions with their personal identities and aspirations. 

With more than a decade of experience as a financial advisor, Hartigan felt uniquely equipped to create a hyper-personalized “Apple-like experience on the front end, allowing people to see themselves in their finances,” she said.

This would help demystify the process and reduce shame and anxiety about money.

In the same way, Apple made computer technology easy and accessible to the masses, Hartigan would design an engaging digital investment and wealth planning platform with a mission to enhance financial literacy, deepen financial inclusion, and humanize finance for all.

Hartigan’s approach shows how technology can make financial planning a deeply personal, even emotional, experience.

Kate Ring, Chief Compliance Officer at one of the largest fintech companies today, Stash, is also pushing the boundaries of what wealth tech can do. 

At Stash, Ring oversees all compliance and risk management efforts, ensuring that the company's products are user-focused and compliant. But her role doesn’t stop there. 

She’s been instrumental in launching Stash’s Money Coach, a conversational interface powered by generative AI. 

This tool integrates Stash’s proprietary technology, offering personalized advice and guidance through a friendly, conversational interface. 

Imagine having a coach in your pocket, ready to offer real-time, AI-powered advice whenever you need it. 

That’s the potential of tools like Money Coach—not just for individual users but also for financial planners. 

These tools could revolutionize how advisors interact with clients, making the experience more personal and practical.

Today, Stash has over six million customers and manages $3 billion in assets.

5 Strategies for Humanizing Financial Planning

So, what else can financial planners do to harness this technology and make financial planning more human? 

Here are five actionable strategies:

1. Leverage AI for Personalized Advice: Use AI to tailor financial recommendations to each client’s unique circumstances, goals, and risk profiles. This helps clients feel understood and valued, building stronger relationships.

2. Incorporate Behavioral Economics: Embed behavioral economics principles into fintech platforms to encourage healthier financial habits. Understanding how clients think and feel about money allows planners to offer advice that aligns with their values.

3. Automate Routine Tasks to Focus on Human Interaction: Let technology handle the mundane tasks, freeing up time for financial planners to engage in deeper, more meaningful conversations with their clients. This shift allows planners to focus on building trust and truly understanding their clients on a personal level.

You don’t need to become a tech expert. You need tech to free up your time so you can become a human expert. 

4. Expand Access with User-Friendly Platforms: Develop intuitive, easy-to-use platforms that cater to clients with varying levels of financial literacy. By simplifying the process, fintech can attract a broader, more diverse client base and make financial advice accessible to all.

5. Incorporate Emotional Intelligence into Financial Tools: Design tools that recognize and respond to the emotional aspects of financial decision-making. Addressing clients’ psychological and emotional needs creates a more supportive and empathetic financial planning experience.

These strategies enhance the human aspect of financial planning and help planners reach that more diverse audience we’ve talked about. 

Despite the many benefits, there are challenges to overcome. The digital divide remains a significant barrier, with many people lacking access to the internet or digital devices. 

This gap can prevent some, particularly those in rural areas or low-income households, from benefiting from technological advancements in financial planning.

Ethical considerations are also crucial. 

As financial planning becomes more automated, ensuring that the algorithms used are transparent and bias-free is essential. While AI and automation can enhance efficiency, there’s still a vital need for the human touch in financial planning. 

FPA Annual Conference 

Want to learn more? Wealth tech leaders Dani Fava, Margaret Hartigan, and Kate Ring will join me on stage during the FPA Annual Conference in Columbus, Ohio, on September 19 to discuss how financial planners can be tech-forward and human-centric. 

We’re diving deep into the points outlined above. Join us live and in person by clicking here. 

Successful financial planning inherently demands a human touch, whether provided by an individual or a sophisticated machine tailored to our unique needs. Mastering this skill is our responsibility.

_{WTF ELSE?}

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_{I WANT IT, I GOT IT}

• 📚 Today’s Read: The Power of Your Subconscious Mind by Joseph Murphy.

• 👀 Today’s Watch: Anyone else glued to the DNC this week? New York Rep. Alexandria Ocasio-Cortez’s speech at the DNC was packed with heat and inspiration.

• 🍣 Today’s Eats: I truly believe that the best way to dive into a new culture is through its food, and let me tell you, there's no shortage of amazing eats in Mexico. One of the highlights so far has been visiting a tequila distillery in Tequila called Tres Mujeres. It's a fantastic place, and even better, it's founded and owned by women.

_FINTUNES

🎵 KAROL G - Si Antes Te Hubiera Conocido

_{LET’S CONNECT}

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That’s all for now! See you Thursday!

Love,

Nicole 💜