How you can stand out and succeed in the digital age

Chances are, robo-advisers haven’t run you out of business yet. You may not have even seen a reduction of clients, though you may be answering tough questions from investors who are more well-informed than in the past and have spent time researching what robo-advisers offer.
While robo-advisers may have sounded like a death knell (or serious threat) for the human-driven financial advice industry at first blush, the reality has been less dramatic than initial fears suggested. Instead, some robo-advisers have offered new technology that can help independent investment advisory firms strengthen their business and learn new tricks along the way.
Robo-advisers can offer traditional advisory firms a model of evolution, not extinction, but only if advisers are willing to adapt and learn from their competition.
USE YOURSELF TO YOUR ADVANTAGE
A saying that my father often used — and one that I am often reminded of when working with my company’s clients — is that when you’ve met one adviser, you’ve met … one adviser.
What my father, Patrick Clarke, who co-founded NorthStar Financial Services Group, meant is that each adviser is unique. The idea might not be groundbreaking, but consider its implications.
Each person offers a unique perspective, and that perspective feeds itself into the work they do. Advisers will have various strategies for how to interact with clients and structure portfolios, and all of those personal methodologies are informed by their unique worldviews.
Clients will be attracted by authenticity and personable care. They’ll also remember what you offer that no one else does.
Advisers do not necessarily need to worry about being better than their competition in every area, but they do need to worry about being different enough that they become memorable.
When you are considering how to position yourself against the low-fee, low-touch model of robo-advisers, consider what about you makes you different. The adviser of the future will have a strong sense of self that guides their purpose.
TIPS FOR BECOMING MEMORABLE
There are a number of ways to set yourself apart with a unique offering, many of which use new technology to make that easier.
When an investor is looking for an adviser to work with, they want someone who is knowledgeable and consistent, but they also want someone who is easy to work with. Technology can help you streamline your operations and fulfill that client need.
A number of technology firms, among them Riskalyze, Jemstep and AdvisoryWorld, offer services to help advisers streamline and automate their practices. Notably, automation can be added to the front-end of an adviser’s practice to allow easier and faster new account opening — long one of the pain points in the advisory space.
If an adviser were to offer clients a way to sign up with their firm and open accounts, all online with no physical paperwork, that adviser would be truly deserving of the title “adviser of the future.”
Now, once an investor has signed up to become a client, the memorable experiences need to continue. One of the best ways an adviser can continue to offer personalized, high-touch service to clients is through a customizable, branded client portal and mobile app.
An adviser who partners with an open, modern technology partner that gives them control over their online presence and client-engagement tools will be well-positioned to serve their clients better than an adviser who only has access to cookie-cutter technology.
An open client portal and mobile app means that an adviser can alter settings based on specific clients, so a more detailed and active client can receive more information tailored to their desires, while another client maybe only cares to download a statement or two each quarter.
Furthermore, the best technology solutions will offer advisers the ability to communicate with clients through their client portal and build up a more personal and engaging investor experience that not only dips into, but also is firmly embedded in, the digital realm.
One of those ways to garner client attention is to create and share personalized videos with them. A video created for clients where each unique individual sees their own information displayed, rather than generic data, can foster a deep sense of attachment, even when an adviser can’t be physically present.
ALWAYS BE LEARNING
One area where many robo-advisers have excelled is in communicating a consistent message, bolstered by meaningful design and branding.
The top-level robo-advisers are well-funded startups that have access to vast resources. Advisers should look toward these businesses to understand how they are communicating and use it as inspiration for their own firms.
In the end, investors will select the option that they see as bringing the most value to them as a unique individual. While robo-advisers offer some advantages, independent advisors can offer the high-touch, differentiated services that cannot be reproduced elsewhere.
While the market for investment advice will grow more competitive, the advisers who win out will be those who are able to craft a personal message that resonates with investors by communicating what makes them different from the shop across the street. Alongside that brand-building, advisers who implement flexible, customizable technology solutions that support their personal brand of client service will ultimately realize the most benefit in the years to come.
Eric Clarke is president of Orion Advisor Services.