We were honored to host the “New Rules of Engagement: The Digital Service Model” session at the 2017 MMI Annual Conference in Chicago.

The energetic session was moderated by MyVest CEO Anton Honikman, and rounded out by a truly stellar panel, including:

  • Tricia Rothschild, Chief Product Officer at Morningstar
  • Tina Hurley, Managing Director of Individual Advice & Planning Solutions at TIAA
  • Charles Smith, Executive Director of Wealth & Asset Management Advisory at EY

The new digital service model is more than just automating investing for self-service clients, but includes traditional advisors adopting new tools and the hybrid service model that combines the best of hi-tech and hi-touch. New technologies and rising client expectations are driving firms to overhaul how they serve clients across segments and channels, redefining the advisor’s role in an increasingly tech-enabled advisory practice.

We’ve gathered the key insights from this engaging, highly-quotable session here:

On tech-enabled hybrid client engagement:

“We’re in a trust-based business, and customer expectations have risen in terms of tech. If the engagement model sucks, no one wants to be there.” – Tricia Rothschild, Morningstar

“With the sheer number who need advice, tech-enabled collaboration is the fastest way to get there. It’s an extraordinarily powerful tool and changes the experience for a client” – Tina Hurley, TIAA

“The next generation of customers (Gen Z) will lead with tech, with the relationship second.” – Charles Smith, EY

On the fine line between using data to improve the experience and maintaining customer trust:

“Trust is far and away the most important factor. Technology helps build trust, and predictive analytics make it easier to get to know your customer. Just don’t be creepy.” – Tina Hurley

“Some of us are still learning where that line is, but when you get it right and you learn more about someone, you have an interactive relationship that consumers are ultimately looking for.” – Tina Hurley

“If you learn more than the revealed truth of an investor using AI, you can erode trust if the client becomes uncomfortable with the intrusion into their privacy.” – Anton Honikman, MyVest

“Keep customer control front and center.” – Tricia Rothschild

On overcoming the tendency for tech to enable our worst behavioral biases:

“As a consumer, what I want and what I need are two different things. There’s room for improvement for how investors react to advice they’re given.” – Tricia Rothschild

“You can slip into reactive behaviors if you’re being guided online. We need to provide guidance as to an investor’s next best action– whether they want to hear it or not.” – Tina Hurley

“We need to give investors an alternative to the S&P. Let’s talk in terms of their goals – change the conversation.” – Tricia Rothschild

On the most exciting tech that will transform the advisory business model:

“Data aggregation will be the most impactful. I don’t want to just see one sleeve or one account. Seeing everything in one place leads to better financial decisions.” – Tricia Rothschild

“Predictive analytics — better use of structured & unstructured data.” – Charles Smith

“Digital collaboration is an extraordinarily powerful tool; it changes the experience for a client.” – Tina Hurley

“Peer analysis is incredibly powerful. Gamification encourages better outcomes.” – Charles Smith

On the impact of the digital service model on the advisor of tomorrow:

“The structure of organizations will change. They’ll support more clients — but with more tools. The mass affluent market will change dramatically over next 5 years; there will be consolidation, and small firms may struggle” – Charles Smith

“Transactional advisors will be left behind because they haven’t created value through a relationship.” – Tina Hurley

“The role of the advisor in this new model is still evolving, but it’s clear they need to adapt or die. In an increasingly tech-enabled world being a life coach will be more important for an advisor than being an investment manager.” – Anton Honikman

Find out how MyVest powers enterprise wealth management for the digital age.