Should you trust your business banking needs to a robo-advisor?

Financial planning is the first step toward your company remaining viable over the long term. Both individuals and businesses use financial advisors. Are you choosing the advisor that’s right for you? In many cases, third-party companies now tout the benefits of bots. But, as Utah’s premier community bank serving Salt Lake City and Lehi, we’ll be the first to tell you there is nothing like a personal touch.

To ensure long-lasting financial well-being and choose a financial advisor who provides you with the necessary assistance and guidance your company needs to not just survive but thrive. Not only can a financial advisor help you create a plan to help you reach your financial goals and guide your progress along the way, but they also can help you save more, invest money wisely and reduce debt. Take Utah as one example. We were the fastest-growing state in 2020 and that growth isn’t slowing down.

With technology continuously evolving and online financial planning services becoming more accessible, individuals and businesses expect more. Run-of-the-mill business banking services in Salt Lake City won’t get you far in a competitive market. Just consider the pros and cons of an online advisor offering you automated investing services. These are often called robo-advisors.

Because here’s a problem with robo-advisors. Put simply, you can’t call your robo-advisor when the markets go wild, your goals need adjusting or your living situation changes. When big changes are afoot, person-to-person interaction with a real-life financial advisor is much more valuable. There are many reasons, but let’s look at a few.

1. Only a human can become a licensed financial advisor.

Banks in Utah and the bankers that work there provide services to their local community. They know the local area and the unique problems their clients deal with. Online robo-advisors try to market themselves and their services as a replacement for real-life financial planners and advisors. But could it be that saving, and investing are just too important for a bot to handle? Also, consider that a human financial advisor does much more than simply manage your money. They get to you know personally to help you create and implement a plan to help you reach your specific goals.

2. Human advisors can handle unexpected questions.

Do you have a question about treasury management services for a Utah-based business? Or do you have very specific mobile banking requirements? A live financial advisor can provide a very comprehensive portfolio that considers all aspects of your financial situation, no matter what unexpected financial needs or requirements you bring to the table. You can ask them specific questions and get immediate, detailed answers, unlike a robo-advisor. By speaking to a real-life advisor, you’re able to provide a clear view of your finances, in your own words and receive professional advice. Robo-advisors are not quick to process unknown information or new concepts.

3. AI systems are not yet complex enough to handle complex transactions.

You may be thinking “if someone else can handle my investments for “free” online, why would I pay an advisor?” Just remember the adage that you get what you pay for. If you want quality advice, you should get it from a place where advisors are used to dealing with complex transactions. Developing a successful investment strategy requires planning with a financial advisor that understands your unique needs and goals. There is a lot that goes into investing and having a real-life financial advisor can help you navigate these considerations with confidence. Making big investment decisions with hard-earned money can be nerve-wracking. Professionals can help you decide how many business checking or business savings accounts you need for your new business in the Salt Lake City metro area.

4. Your business’ financial needs are unique.

We can all agree that every company’s situation is different. Whether you are young and beginning to invest your company’s profits, you need someone aware of your unique financial situation. And as time goes on, your business may grow and consolidate. How will the market receive you? Having a human financial advisor means you have someone by your side to provide their expertise, guidance and professional advice that is best suited to the business environment you operate in.

5. Only other people can understand a person.

Machine-based financial advisors use software and algorithms to make decisions. First Utah Bank financial advisors are there to help you, listen to your needs and life goals, walk you through challenging topics and talk through why you’re investing. They develop a financial strategy that is customized for you and put your company’s interest above all else. They see each account as a person, a couple or a family, not just a set of numbers. They can guide you through all sorts of business lending, cards, and business bank accounts.

First Utah Bank is proud to be Utah’s community bank. We serve local Utah-based businesses with business banking solutions they can count on. Count on us to help guide your business through today’s complete banking landscape.