Advisers have their sights set on these fintech tools

Where are the tools to help predict client moves?
JUN 26, 2019

Financial professionals who are increasingly competing with online digital advice firms are looking for their own set of digital advancements: tools that highlight the benefit of the human advice to clients and notifications to help advisers anticipate clients' changing needs. "The technology that's coming will be technology that really better re-enforces our value proposition as financial advisers and really puts us far ahead of today's robos, which are really tackling just one problem — investments," said Andrew Altfest, managing director of Altfest Personal Wealth Management, at the InvestmentNews Fintech Think Tank on May 22. He and other industry professionals want clients to be able to know exactly how advisers are helping them. "When a client goes home, there should be much more balance, like, 'Here's what we have done for you recently,'" Mr. Altfest said. "'We helped you refinance a mortgage that had a balloon payment in two years; we also made these changes in your portfolio. And here's a lot of other stuff that we're doing.'" (More: Technology can help turn client conversations toward planning in next bear market) Nick Graham, chief technology officer at Cambridge Investment Research, said technology that interfaces with clients shouldn't be so simple that it hides an adviser's efforts. "The fact that he stayed on Saturday and worked Monte Carlo scenarios to be able to come up with the unique answer, for the question that the client had, should be something that he can demonstrate without having to walk [the client] through it," Mr. Graham said. Advisers also are seeking richer client data to predict what clients will do or might need next. Christopher Cordaro, chief investment officer at RegentAtlantic, said his watch notifies him when he's been sitting too long and needs to stand up. He'd like a similar prompt about his clients. "The planning side, that's where we're in the Stone Age," Mr. Cordaro said. "I need some type of planning, behavioral triggers like that for my clients so that I can service more clients in a more efficient way and give them a better experience." Doreen Griffith, senior vice president and chief information officer at Ladenburg Thalmann, said advisers are seeking such clues to client behavior. "The No. 1 thing that our advisers feel would be of value is client attrition behaviors that they could be proactively aware of so that they can do a proactive reach out to understand," Ms. Griffith said. "The confidence level in the data is just not there." Richard Keltner, director of product management and investment services at Fiserv Investment Services, said the market is about to deliver. "We're on the cusp of being able to offer a highly personalized experience from taking in real-time data about your clients," he said.

Latest News

Merrill lands four advisor teams as May recruiting data shows firm's two-way churn
Merrill lands four advisor teams as May recruiting data shows firm's two-way churn

Merrill's latest hires span Colorado to Louisiana, even as industry-wide recruiting data suggests the firm is losing almost as many advisors as it gains.

Fund manager sues Kandeo, alleges $100 million FinSocial loss
Fund manager sues Kandeo, alleges $100 million FinSocial loss

The $36 million buy allegedly hid inflated books and a $50 million diversion.

Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit
Advisor gets $200,000 from Ameriprise in 'emotional distress' lawsuit

“An award citing emotional distress is very unusual,” an industry executive said.

Workplace financial education linked to stronger financial habits, but participation remains low
Workplace financial education linked to stronger financial habits, but participation remains low

New EBRI research found workers who participated in employer financial education reported higher confidence, literacy and financial satisfaction.

The rise of the super advisor: How AI is redefining competitive advantage in wealth management
The rise of the super advisor: How AI is redefining competitive advantage in wealth management

Beyond operational excellence, the winning advisors of the future are the ones who can reach across multiple disciplines without discarding specialist skills.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income