Providing a digital experience for clients was among the top priorities for advisors and financial professionals to pivot their practice in response to the pandemic, according to our sixth annual Advisor Authority study. And serving clients remotely was the number one way that they would use technology to better meet clients’ needs. It’s not just for right now and not just for current clients. A digital experience that puts clients first will also help you attract the next generation of clients and retain clients’ heirs as inter-generational wealth changes hands.
AI And Analytics Can Drive Deeper Insights
Artificial Intelligence and advanced analytics already fuel numerous robo advisory solutions like SoFi, Betterment and Wealthfront, which can be used to optimize portfolios. AI drives solutions such as Riskalize and Vise, which are used to help mitigate market risk.
But the real future of digital transformation is embedding AI and advanced analytics directly into your own practice. In fact, AI and advanced analytics were among the top five solutions that advisors and financial professionals were most interested in integrating into their practice, according to Advisor Authority.
By using the power of AI, every interaction with a client, every email or LinkedIn post they open, every visit they make to your website, creates new data points along a continuous feedback loop. This can be used to predict the best next steps and create a more personalized path, for more meaningful client connections. And as more data is added, AI will get “smarter” at every step along the way.
It’s In The Cloud
To truly scale your use of AI and advanced analytics across your operations requires managing your clients’ data to ensure that it is accurate, current and consistent—as well as ensuring it remains private and secure.
You’ll need the right CRM. And you’ll need the cloud, for its capacity to store, manage and protect the data you’ve collected within your own firm, and the data you rely on from product providers and other third-party sources. For a growing number of advisors and financial professionals, cloud-based platforms will continue replacing many legacy systems to support agile innovation and rapid growth.
Engaging And Empowering Employees
We have also learned that when we give our associates the most efficient and scalable technology, it empowers them to solve complex problems, provide better service and put more focus on meeting the needs of financial professionals—so that financial professionals can focus on meeting the needs of their clients.
In this same way, the right technology can help you and your firm improve decision-making, productivity and collaboration. It can empower you and your team to solve complex challenges and develop specialized expertise. It can automate routine tasks and free up time for more high value activities. Digital transformation also means instilling an “innovation culture” among your employees at every level of your firm and investing in their development and upskilling.
Re-Tooling For A 24/7/365 World
Even after all of the adaptations and innovations made last year, many wealth management firms are re-thinking their strategic priorities and re-tooling their practices for a 24/7/365 world. Change continues and the digital transformation of our industry has a long way to go. Now the stakes are getting higher. Because it’s not just other advisors and financial professionals competing for your clients. It also tech leaders like Amazon and Google who are looking for ways to capture a share of their wallet and a portion of their investment portfolio. So, are you going to race against the machine—or run with it?
Craig Hawley is head of Nationwide’s annuity distribution.