Hortz: Do you really have to be super tech-forward to do these things?
Stevenson: That is a great question. And the simple answer is in the question Do you need to know how Google works to use search? The answer is no. I think that there is a big misconception throughout financial services and certainly in wealth management in particular where advisors have a Terminator-type perspective of AI. Meanwhile, it is relatively innocuous.
It is really just doing similar things to what Google is doing for you, but across all of your data versus imagine you trying to search across the internet or look through the Yellow Pages manually yourself. That is what advisors are doing today with their data. Trying to piece together all their data is literally like going through the Yellow Pages versus using AI to connect all your data and surface what is relevant so that you do not have to do that work.
Hortz: How has your firm grown from being an AI data analytics vendor to now being a platform and strategic partner that brings innovative services to the industry?
Stevenson: Another great question. As we have grown as a company, our platform has become more and more robust including self-service functionality. We really have developed an end-to-end set of capabilities that include the processing of structured and unstructured data. All of the types of integrations that you would need to connect up to the daily workflow of an advisor or an asset manager, wholesaler as well, as a single engine; an AI-based engine to be able to do a lot of work automatically.
And then we have developed an entire range of deep learning-based algorithms to detect very useful information and unstructured data and then match that against instruments in the marketplace and all that existing structured data. Almost 90% of the data in our firm is unstructured. And so today, most wealth managers only use about 10% of what is really available to them. So, we designed a platform that is unlocking all of that. We have also added the Salesforce and CRM plugins to deliver insights into the workflow.
We are particularly good at doing data-driven next-best-actions. And then we have dashboards to analyze all of the usages of that data for managers and business users to be able to bring insights into their business. We have packaged all that into a platform-as-a-service and are able to work with firms that cater to many clients, like our latest strategic partner FLX Networks, to be able to lift the boats for everybody. By partnering with FLX, we can provide a backbone to their operations to help them offer next-generation capabilities including the data analysis capabilities and all those use cases we discussed leveraging all their data for all of their wealth and asset management clients. It brings very powerful economies of scale to FLX clients.
We also have a partnership with Tata Consulting Group which largely works with large financial services firms. We work very well together in a type of “Intel Inside” type approach where some or all parts of our platform could fit into a large wirehouse infrastructure to meet specific needs. That is where we have a distinct advantage. We are solely focused on the financial services domain and have the ability to process unstructured data better than most competitors and the whole package can be deployed in less than three months. That greatly accelerates time to insights and time to markets.
Hortz: Do you have any recommendations or advice for financial professionals on how to begin or better integrate next-generation digital infrastructure into their firms?
Stevenson: Have the right mindset and goal going in. I can break it down even more simply to the end in mind. AI in wealth management helps advisors focus on their clients with the data that matters most to engage and retain clients and generate new revenues by providing highly personalized services. That is it really, as simple as that.
We would then recommend some of the industry leaders in this tech enablement space, that we work very closely with, to help you in making decisions on your digital journey.
Certainly, from a consulting standpoint, we can recommend Craig Iskowitz and his Ezra group as they have a very good data analysis package for small to midsized firms where you can get a clear view of where you stand on your digital infrastructure.
Gavin Spitzner and his Wealth Consulting Partners is well known in the industry and has really deep expertise with wealth management leveraging technology. He is certainly at the forefront of AI and the deployment of data-driven strategies.
Then there is John O'Connell and his Oasis Group with their financial technology coaching services and Joel Bruckenstein and t3 Consulting Services, a tactical expert at deploying cutting-edge technology in an effective way.
Tata Consulting Group and EY are especially recommended if you are a large firm. We can make great introductions into a Tata and equally into EY for that level of engagement.
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 position our members with the necessary ongoing innovation resources and best practices to drive and facilitate their 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, Advisorpedia, Pershing, Fidelity, Voya Financial and Charter Financial Publishing (publisher of Financial Advisor and Private Wealth magazines).