The power of technology to bridge the financial advice gap

Client relationships The power of technology to bridge the financial advice gap

Nearly 90% of Americans aren’t getting financial advice today, even though so many would benefit from it. And with rising interest rates, inflation, and lingering economic uncertainty, people approaching retirement need trusted guidance more than ever.

For Americans approaching retirement, the stakes are even higher. They’re trying to make big decisions during one of the most volatile economic periods in recent memory. And they deserve guidance they can trust.

Why the advice gap continues to widen

To solve the challenge, we need to understand what’s causing it. Three big issues stand out.

1. Cost

Most Americans don’t meet the minimum asset thresholds to work with a traditional advisor. And that’s the biggest irony — the people who could gain the most from advice often can’t access it. Even when they can, smaller accounts typically don’t receive the same level of personalized support as wealthier clients.

Advisors want to help more people. But the traditional business model makes it tough to do that at scale.

 

2. Lack of understanding

Financial literacy is still a major challenge in the U.S. Many people aren’t confident making basic financial decisions, let alone retirement plans or investment choices.

And when you’re balancing rent, childcare, groceries, and rising costs, sitting down with a financial professional can feel out of reach, conceptually or financially. People often don’t know what help is available or why it matters.

 

3. Fast, inaccurate information

Social media has created the illusion of “advice everywhere.” But much of what people see online is unregulated, generic, or just incorrect. It spreads quickly, sounds confident, and often drowns out more reliable insights.

The result? People believe they’re getting enough information to make good decisions, without realizing that bad advice can set them back years.

 

How technology helps close the gap

Technology isn’t the whole answer, but it’s a powerful accelerator. At its best, it improves access, increases efficiency, and helps advisors scale their impact. It gives firms a way to serve more people without sacrificing quality or burning out their teams.

Here’s where it makes the biggest difference.

 

Lower fees

By streamlining and automating tasks and processes advisors used to have to perform manually, or hire additional staff to manage, technology can help eliminate significant resourcing and operational burdens, creating cost savings that can be passed onto clients in the form of lower, more affordable fees.

Automating manual steps, from onboarding to rebalancing to reporting, reduces operational lift and overhead. Advisors spend less time on tasks that don’t require their expertise, and more time on conversations that do.

Those gains translate directly into lower, more approachable fees. The result is a business model that works for more households, not just the wealthiest ones.

 

Better communication and education

Client portals and apps help advisors stay connected with clients in a way that feels easy and human. But the impact goes beyond 1-to‑1 communication.
Digital marketing tools, content platforms, and automated campaigns help advisors share educational content more broadly. They can deliver guidance that cuts through online noise and builds trust with people who might not be clients — at least not yet.

This kind of proactive communication helps reshape how the public views financial advice: not as a luxury, but as something accessible and empowering.

 

More time and capacity

Advisors are running businesses while managing books of business — and that often means they’re stretched thin. Technology lightens the operational load, giving them space to:

  • Support smaller accounts more effectively

  • Take on pro bono clients

  • Mentor junior advisors

  • Build service models specifically for lower‑income households

More time means more impact. And more impact is what closes the gap.

 

The time to expand access is now

With volatility still high and recession concerns lingering, households across the country need guidance they can trust. This is a pivotal moment, and the industry has an opportunity to rethink how advice is delivered and who gets to receive it.

RedBlack's suite of advisory solutions helps remove manual work and operational bottlenecks, giving advisors the scale, efficiency, and confidence to reach more people than ever before. It’s about more than technology — it’s about building a more inclusive future for financial advice.

 

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