This is the title of a book that addresses the fact that while technology has been constantly reshaping our personal and daily lives and how we operate, when it comes to important decisions, humans want guidance and direction – or at least validation from human experts that the choices they are making are the right ones based on their situation and priorities. This is vitally important!

Many of the wealth management decisions that clients need to make are emotional, and underlying that emotion is a high level of complexity and even subtlety related to things machines and AI can’t fully comprehend; things like family relationships, family dynamics, accounting for and balancing competing interests, and personal situations that are difficult to assess with technology.

This is not to say AI and technology do not have a place in the process, as it will certainly add to the value advisors deliver. But it does highlight what all organizations and advisors need to recognize – that the role of the advisor has already shifted in significant ways. Platforms and the products available in the wealth management industry have become ubiquitous, making it extremely difficult to differentiate on product and platform alone. But as the chart above shows, the role of the advisor is shifting to one where EQ and the “soft skills” are the most relevant skills for advisors, while technology has and will increasingly provide the technical acumen around planning decisions.

For HNW, and particularly UHNW clientele, machine learning and even “robo-advice” have relevance. But the ability to deliver truly comprehensive advice, guidance and insights pertaining to their complex situation will continue to be of significant value.  And that can only come from a skilled and experienced advisor.

Put simply and bluntly, advisors need to recognize the transition they need to make!  Far too many firms and advisors purport to deliver “comprehensive wealth management” and that we “lead with planning.” But despite this claim, most merely address the recognized, stated current needs of a prospect and then manage the relationship on autopilot, satisfied that they acquired a new client.

To assess where you are on this, look at your organization or practice and ask yourself, “in how many of my client relationships am I proactively engaging them on the following?”

• Unstated Needs:  These are needs that might not have been raised by the client, but about which they have some angst.
• Unrecognized Needs:   This is most important!  These are the issues a client faces but remains unaware of their importance to their family and financial situation. Overlooking this is equivalent to going to your doctor for an annual physical and only getting from him or her an analysis of the problems or concerns YOU are aware of, neglecting to do a deep analysis to identify something unrecognized before it can become an untreatable problem. If our industry purports to deliver comprehensive wealth management, it’s our duty to proactively perform an analysis of their full situation and diagnose key issues that need to be addressed.
• Changes in their situation:  Everyone’s current family and financial situation today is different than it was 5 years ago. For most, their wealth situation, their outlook, and even their goals changed from that period not too long ago that we now refer to as “Pre-COVID.” But too often advisors overlook the significant value they can provide to clients and their families by fully understanding those changes, analyzing how those changes impact their wealth situation, and provide the insights needed to properly adjust their wealth management plan.

Based on our experience, a minority of firms and advisors consistently focus on these areas, and those that do have highly loyal clients who reward them with a continuous stream of additional assets and client referrals. Though some of these things can be supported with further development of AI and other technologies, this requires a high level of EQ, with the ability to connect with their clients, develop a deep understanding of their situation with true empathy for those realities, and move from selling products and ideas to a role of helping clients evaluate alternatives and make effective decisions.

If there is one skill vital to the advisor of the future, it’s the ability to conversationally, empathetically, and sincerely elicit a deep understanding of each individual client through a perpetual process of discovery. This requires advisors to have an effective framework for this process, with objective benchmarks that highlight the scope of information required to have an initial comprehensive understanding of the client situation. No longer will the traditional financial profile form be enough. Those are just mere facts.

As humans our lives are far more than a data set of our financials. Our lives and our aspirations for wealth are based on the complexities of our emotions, our values, and how those values and life experiences shape our priorities in the management of our wealth.

If you and your organization are interested in more perspectives about the advisor of the future, and the vital importance of deep discovery as a critical, measurable skill, reach out to us.  We’d be happy to provide you with some of our insights about the continuum of the discovery process that occurs from the prospect stage to on-boarding and through the life of a client.  We can also provide our insights on how we are working with firms to define objective benchmarks that allow for the measurement of discovery at the client level, and how we are supporting advisors in developing the esoteric skills required to be effective in the discovery required to be successful – and of unique value to clients – in a world of AI.