Using Technology to Improve the Client Experience

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People don’t like change. Advisors are no exception. There’s a tendency to stick to the tried-and-true methods of managing money at the expense of embracing the latest innovations. Unfortunately, when we attempt to walk the line between meeting expectations and mitigating risks, it’s easy to stand in the way of progress – when our clients expect the opposite.

Forward thinking should be the norm. The investment landscape is constantly changing, and advisors who fail to recognize this (and don’t keep an eye on the horizon) can lose out to those who welcome new technologies, trends, and behaviors.

Frank Lloyd Wright once said that “mechanization best serves mediocrity.” When used improperly, technology amplifies mediocrities and impedes progress. But used wisely and with forethought, it works wonders.

It’s up to RIAs and other advisors to deploy technology without losing sight of what clients want. Consider these examples:

Blockchain technology has many applications, such as securing client transactions and providing transparency where it’s needed.

Hyper-automation involves robotic-process automation (RPA) to streamline internal processes and improve client services. For instance, AI, machine learning, and other new technologies can speed up workflow data management and perform routine tasks.

“RegTech” provides advisors with an easy, time-saving way to meet compliance requirements, effectively minimizing the risks of costly regulatory infractions and their negative impact on client relationships.

Artificial intelligence has an array of potential uses. Bots shouldn’t autonomously recommend investments, but they could respond to simple client requests and qualify leads.

Making the most of available tech should be a priority for every RIA. Clients and prospects expect it in the digital age.

Fueling future growth

Attracting new clients and growing your firm are important goals; yet here again, there’s a lag in the forward thinking that makes those goals into a reality. What can you do to avoid moving backward and fuel the growth you need?

Scale services to offset tech expenses

Cost may deter you from adopting new innovations. Perhaps an initial investment is higher than you’d like, but you can drastically improve your client experience and bolster your long-term bottom line by scaling services. That said, you may want to consider increasing prices to offset initial tech costs.

Increase income with scaled-down services

High-income individuals and families may fill your prospect pool, but they’re not the only people who need help managing their money. Technology can help you create client self-service options that are (a) less time intensive for your team; and (b) more affordable for a broader segment of the population.

Bring lead-gen into the 21st century

Lead generation is a key ingredient in organic growth. The simple act of bringing your lead-gen system into the 21st century can help your company grow. AI can help you qualify leads and, once it does, you can reach out personally or with targeted ad campaigns to maximize your prospecting efforts and increase conversion rates.

Other services for holistic wealth management

Holistic wealth management is a growing trend. More RIAs are looking beyond conventional investment advisory and integrating other services, including insurance, retirement planning, and college savings. This approach attracts new clients while simultaneously earning more from existing ones who may prefer an all-in-one approach to wealth management.

Leading with foresight

Change in the financial sector can’t happen without leadership – and true leadership requires foresight and bold action.

Diverse hiring, or a lack thereof, is a serious issue in the financial sector: 75% of all CFPs are male and 82% are white. There’s an unequivocal need to give opportunities to more women and people of color – and doing so can attract new clients.

Internal collaboration can be challenging without proper communication and a willingness to create an inclusive environment. Collaboration allows you to hear everyone’s ideas and choose those that will help you succeed.

Mentorship of young employees or those new to finance can help you build a diverse talent pool to best serve your clients.

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All too often, leaders allow themselves to become mere figureheads. The act of leading means taking chances, even when it may not be comfortable.

Takeaways

The biggest risks come with the greatest rewards. It’s your job as an advisor to expect and embrace change, scrutinizing new opportunities and tools for those that serve you and your clients best. Your boldness will help your clients see you as a forward-thinking leader who’s capable of guiding them into an uncertain future.

Matt Reiner is a CFA, CFP®, and partner at Capital Investment Advisors, a $2.8+ billion RIA in Atlanta. Reiner is also CEO of Wela Strategies, a sister company to Capital Investment Advisors, and is the founder and CEO of Benjamin™. Benjamin is an AI technology created by Reiner after seeing the gaps in technology used in his own firm. Reiner's true passion is using his vast experience to coach other advisors across the country, helping them evaluate their firms' practices and find the best strategies for future success. To reach Matt Reiner, visit www.MattReiner.com.

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