Kenny: This is precisely where Client Life Management and digital vaults play a material role. One of the most effective ways firms and advisors can execute and maintain a multi-generational strategy is by implementing a Client Life Management Vault for family legacy information, data and documents.
A well-structured digital vault serves as a central repository for all the important documents and information that clients and their families need to access to develop wealth transfer strategies or in the event of a change in circumstances, such as the passing of a family member, liquidity events, or the retirement of an advisor.
Having everything centralized in one place is not only a huge time-saving benefit for clients and their next generation, but it is also of massive value for institutions and high-touch advisory professionals.
Hortz: How else did you build and design your digital vault tech platform to address enabling a holistic Client Life Management business model and empower advisors to be more competitive?
Borghesan: This ultimately boils down to a few key principles. The first is understanding the role of an advisor and the various types of interactions that are driven by data, information and documents when working with clients, especially High Net Worth (HNW) and Ultra High Net Worth (UHNW) families. Our platform equips the modern firm and advisor with the right tools to securely request, collect and exchange critical documents from clients, family members and their network of trusted advisors. With automation capabilities, we are also able to streamline the automated delivery of custodial and portfolio-related documents.
The second is understanding client needs and expectations when working with firms and advisors, with respect to data, information and documents. Clients expect best-in-class security to protect their data and information and that becomes table stakes for any financial advisory business. Clients expect, and assume, that advisors are always meeting their regulatory requirements; this goes hand-in-hand when working with technology companies. And importantly, clients expect a digital-first experience and interaction where their information, data and documents are readily available to them, on the go, 24-7.
Kenny: Another key principle ultimately comes down to evolution of the role of the modern advisor. As more and more firms lean toward a family office or white-glove approach with highly personalized services, especially with HNW and UHNW families, the primary financial advisor is slowly emerging as the family’s most trusted advisor in their life. This has steadily paved the way for additional services and information being managed by the advisor and by the firm.
Last, but not least, the data and the information within the documents are what ultimately drives the engagement and tells the client’s story. We built data extraction capabilities to feed into internal systems and leverage actionable insights; supporting institutions and firms looking to take their value proposition and the way they are managing client information to the next level.
Hortz: What recommendations can you share with advisors on how Client Life Management can provide a competitive value proposition?
Borghesan: Client Life Management positions the modern advisor to thrive by being relevant and instrumental through the entire relationship with a client - from onboarding and engaging all aspects of a client’s financial, business and personal life to wealth transfer strategies, legacy planning and establishing their children with structured holistic financial plans of their own.
This level of value and engagement adds a competitive business alpha—a digital moat strategy—to your firm where you can engender more trust, access additional family members or centers of influence, and develop a highly referable business. It is really about creating an environment where you are building loyalty across a family, across generations.
Kenny: We will undoubtedly see digital vaults continuing to emerge as a must-have piece of the modern advisor’s tech stack and continuing to play an incredibly important role in bringing all areas of the client’s life together and centralized in one spot, for everyone.
Access to information from every level - head office, advisor, client and family members—can and will ultimately drive the modern relationship in a world where the advisor’s role continues to change. Positioning yourself at the center of your client relationships, by virtue of having access to their information, data and documents, will ensure that you and your clients work together, in harmony, from a trusted position.
The Institute for Innovation Development is an educational and business development catalyst for growth-oriented financial advisors and financial services firms determined to lead their businesses in an operating environment of accelerating business and cultural change. We operate as a business innovation platform and educational resource with FinTech and financial services firm members to openly share their unique perspectives and activities. The goal is to build awareness and stimulate open thought leadership discussions on new or evolving industry approaches and thinking to facilitate next-generation growth, differentiation and unique community engagement strategies. The institute was launched with the support and foresight of our founding sponsors—Ultimus Fund Solutions, NASDAQ, FLX Networks, TIFIN, Advisorpedia, Pershing, Fidelity, Voya Financial and Charter Financial Publishing (publisher of Financial Advisor and Private Wealth magazines).