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Unlocking the Human Side of Digital Transformation

Writer's picture: Jim MeehanJim Meehan

Navigating Change in the Financial Sector


Have you ever called your bank about a suspicious transaction only to get trapped in an endless loop of automated responses? In an age of digital transformation, moments like these remind us why human interaction still matters.

Digital services have revolutionized how we manage money, but they can’t replicate the most fundamental aspect of financial advising: genuine human understanding. While robo-advisors can crunch numbers, they can't comprehend the emotional weight behind a client's financial decisions or take a call from a panicked investor. That’s where we humans will always have the advantage.

The Value of Human Interaction in Financial Services

While digital advances can make it easier for clients to perform mundane tasks such as checking account balances or viewing portfolio returns, there are plenty of instances where human interaction trumps technology.

Complex advice: Suppose you’re a small business owner concerned about affording retirement. A robo-advisory platform might recommend a diversified portfolio prompted by algorithms and software, often based on an initial questionnaire. However, a human advisor factors in your entire journey—for example, years of entrepreneurial risk, family considerations, or personal aspirations that no algorithm can interpret.

Problem-solving: Imagine discovering an unauthorized $5,000 withdrawal from your 401(k) due to an administrative error. An automated system may only be able to confirm the transaction or put you on hold for lengthy periods. Meanwhile, a human advisor or team can quickly spring into action and help get to the root of the problem while verifying that your retirement funds are secure.

Life milestones: Say you’re a young couple buying your first home, but your mortgage applications keep getting rejected by online and other lenders. It turns out their algorithms have flagged self-employed income and seasonal business fluctuations as potential reasons to disqualify you. But a financial advisor evaluates the complete picture—a successful small business with growing revenue, substantial savings, and untapped investment assets.

Technology as an Enabler, not Replacement

Customer Relationship Management (CRM) systems can leverage technology to enhance human interactions and decisions. Modern CRM tools do more than store data—they provide more complete insight hat helps financial professionals deliver personalized experiences:

  • Automated birthday, anniversary, or holiday greetings that build a rapport with the client

  • Targeted email journeys based on client life stages, such as the birth of a grandchildren, a retirement launch of a new job and others

  • Comprehensive client history to inform meaningful conversations

CRM software pulls data from various sources, including phone calls, emails, financial activities, and transaction history, giving financial advisors a sweeping view into managing each client's unique needs and preferences.  CRMs can also be an effective tool for sales managers or other leaders to monitor activity and help identify opportunities for advisor coaching.

Best Practices for Balancing Automation and Human Interaction

These four best practices can help financial professionals leverage technology while preserving the human connections that truly drive client satisfaction and loyalty:

  1. Automate routine tasks: Automate data entry, appointment scheduling, and basic customer inquiries, freeing advisors to focus on high-value interactions.

  2. Enhance meeting preparation: Use CRM insights based on recent activities and notes to help prepare for more meaningful client interactions.

  3. Respect communication preferences: Analyze client data to understand individual communication styles, ensuring interactions are delivered through preferred channels and in formats that resonate most effectively.

  4. Provide consistency: Create a unified client experience where information, tone, and context remain seamless across digital platforms, phone interactions, and in-person and virtual meetings.

Embrace the Journey

As we continue to embrace digital transformation, it's clear that the future isn't about choosing between human expertise and technological efficiency; it's about artfully blending the two.  Insurex helps clients do just that on so many levels, from HQ leadership models to those impacting individual advisors and practices. Financial institutions that master this mix will raise the bar for client service and satisfaction, not only in the financial sector-- but across all segments of the economy.

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