For the rich, technology can’t replace advisors (yet)

The first robo-advisors debuted in 2008 and became more popular a few years later. Today, some platforms aim to do more than just robo-advisors focused on investment management. There is a new wealth technique that aims to replicate the functionality of a single-family office for those who are significantly less wealthy. Also, came ChatGPT, a herald of a sea change in the private wealth industry, as well as many others.

Defining the wealthy as having a net worth of $10 million or more, and considering the needs, desires, and preferences of this group, it is clear that only a very small minority would use wealth techniques without the involvement of advisors. Even so, the wealthy still A variety of private wealth professionals will be relied upon to implement wealth management solutions. Another consideration is that many wealthy individuals who choose to rely on wealth technology rather than advisors are likely missing out on important financial opportunities.

Providing exceptional value to a wealthy individual requires a deep understanding of that individual’s hopes and dreams, worries and anxieties. We refer to the process of developing the necessary deep understanding as discovery.According to DK Family Office Business Director, Founder of Konvergent Wealth Partners and Optimizing Clients’ Financial Lives: Harnessing the Power of an Accounting Firm’s Elite Wealth Management Practice“Discovery is the way to really get to know any prospect or client. Since wealthy clients often have complex lives and multiple intertwined goals, being able to adjust Discovery conversations in real time is critical. If an advisor is relying on a checklist or some sort of decision tree or Some kind of technical solution, they can’t do discovery. People are just too complicated.”

Also, being able to build customized working relationships is important. These insights and directions are then matched with possible wealth management solutions and communicated in a way that resonates with wealthy individuals. We call this a narrative. “By matching our affluent clients’ goals with family office solutions, and being able to communicate the alignment and value of those solutions, our affluent clients move quickly,” said CEO, Founder and Co-Author, VFO Advisory Group Vince Annable said or Your high-performance virtual family office: maximizing your financial and personal life.

Today, most consultants are neither involved in discovery nor developing a strong narrative. It’s fair to say that most wealthy people are underserved.According to Fujiwara Family Office President and Brilliant Outcomes: Maximize Your Family Office’s Value Like the Super Rich“With such a large percentage of the wealthy underserved, advisors who (1) have the ability to spot, (2) can communicate well, and (3) are proactive and transparent have a huge competitive advantage. For example, because A lot of rich people have poor service, so it’s really easy to win business from the rich, even the super rich, from other advisors.”

As for positioning wealth tech as a low-cost provider, that hasn’t always been the case. “The goal is to deliver superior results,” Fujiwara said. “In order to deliver superior results, the family office solutions we propose are always cost-effective. The value we deliver is always an order of magnitude higher than what we charge our clients.”

There is no doubt that artificial intelligence will quite quickly enable advisors to efficiently offer a range of wealth management solutions. All levels of technical expertise will be commoditized and available to nearly everyone. So technical expertise is or will soon be a non-differentiator.

It is conceivable that one day artificial intelligence will be able to make discoveries and construct powerful custom narratives. However, this won’t happen anytime soon. Currently, wealth tech is not a competition for advisors who are good at finding and building a strong narrative, but then again, probably over 90% of the advisor community is not a competition. If anything, ChatGPT and future AI innovations will enhance the success of advisors who can combine wealth technology with a deep understanding of their clients.

Prince Ellen of Russia He is Executive Director of Private Wealth Magazine ( and Chief Content Officer of High-Net-Worth Genius ( He advises family offices, wealthy, fast-growing entrepreneurs and select professionals.

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