Speaker 1: Alicia, thank you so much for doing this.

Speaker 2: Thanks for having me, Jamie.

Speaker 1: So we're going to talk about digital transformation and where institutions and investors are along their route to full digitalization, shall we say. But some people are at such different stages. Do you want to talk us a little bit through why that is?

Speaker 2: Sure. I think first, we want to dispel the myth that there's a finish line. I think when you talk about digital transformation, you're really talking about a process of continuous improvement. And firms today, it's great that they have a strategy. In fact, in a recent survey, we had 72% of wealth firms saying that they're confident in the progress that they're making with their digital transformation journeys. But they need to think about more than just what it means from a technology perspective. It's really about what are the process improvements we can make? What's that culture of innovation that we want to instill, and what do we need to do for our employees to make sure that we're able to continue to drive value?

Speaker 1: So let's talk a little bit more specifically. What are these institutions doing operationally to try and advance the digitalization?

Speaker 2: I think the first step is identifying what is the strategy, where do we want to be? And so firms that are focusing on that end game and making small and steady progress toward that end goal are having the most success. Maybe 10 or 15 years ago, it was all about how do you digitize paper processes? So how do you take something that might be analog today and make it digital? Today it's more than that. It’s about how do we ingrain this in our culture and how do we make sure that our employees are getting the right skills training, as well as understanding the voice of the client? A big differentiator in today's digital strategies is focusing on that customer expectation and customer experiences.

Speaker 1: Well, Alicia, let's ask more about that. How are institutions finding out more about what their clients and investors want?

Speaker 2: Data is king right now. There's much more that you can understand about a consumer, how they're interacting with your brand, with your employees, and with financial advisors. That's really setting the stage for how you want to continue engagement with clients. It's not just about wealth management. We need to think more broadly. Clients are walking around with a computer in their pocket, interacting with brands in many different ways. So, from a wealth management perspective, how can we take a look at some of those experiences, reduce friction, give customers more accountability, and empower them to manage their finances? Those are the areas where firms are paying more attention. How do I personalize those experiences and make sure that my customer is getting the best out of every engagement with us and their advisors?

Speaker 1: And really, what's driving product innovation? Is it client demand for more offers, or is it digitalization itself, enabling more possibilities?

Speaker 2: It’s a little bit of both. The most important piece is, what am I hearing from my customers? What are the expectations? As we look at the changing face of the investor and the consumer, what will the expectations be in five, ten years? You also have a younger workforce that wants to do more exciting things, understand emerging technologies, and continuously improve. That dynamic, understanding where your investors and employees are, is driving many industry strategies.

Speaker 1: You mentioned the younger workforce. From what I’ve read, there seems to be less of a compulsion from younger workers to save. Is there a generational gap between the older generation, ingrained with saving, and the younger generation, more focused on spending today?

Speaker 2: I think there's a slight generational difference in their approach to retirement. Older generations had a clear idea of retiring with a steady income. Younger generations, however, might feel that saving for the future means sacrificing today’s experiences. But as they age and take on more responsibilities, their perspective shifts. They begin seeking more guidance and understanding the importance of saving and planning.

Speaker 1: Alicia, you mentioned data. Can you go into more detail about how institutions use data in wealth management? Where is the data coming from, and how is it used?

Speaker 2: It starts with a strong data strategy and governance. Managing someone's finances requires understanding a lot of personal details—income sources, retirement expectations, and more. This information used to be siloed, but thanks to advancements in digital technologies, especially cloud-based solutions, it’s easier to create a holistic view of a person. Having real-time information allows firms to provide advanced analytics, predictive models, and leverage AI to better serve clients.

Speaker 1: Speaking of AI and robo-advisors, are we at the point where technology can provide a complete wealth strategy based on personal data?

Speaker 2: We’re close. With robo-advisors, users typically answer risk profile questionnaires and input preferences, like avoiding certain industries. The tools can suggest portfolios, provide forecasts, and even automate investments. It educates and coaches users on how to manage their money, but it might not always get you to 100% of your goal. It's still a valuable tool for understanding and planning.

Speaker 1: Will digitalization drive fees down and eliminate the need for human advisors? Or will there always be a role for human touchpoints in wealth creation?

Speaker 2: I don’t see AI or technology replacing human advisors in my lifetime. What we saw during the pandemic is that people wanted reassurance from human advisors, not just digital tools. The trust people place in human interaction will keep the human element central in wealth management.

Speaker 1: Alicia, before we wrap up, how does economic and political instability impact product design? Is it something your clients are concerned about?

Speaker 2: Political and economic instability underpins much of what financial advisors do. For us, it's about finding ways to better engage clients during uncertain times. By providing personalized messages and authentic engagement, advisors can help clients feel more secure, reduce panic, and maintain strong client relationships.

Speaker 1: Alicia, you've been fantastic. I’ve really enjoyed our conversation. Thank you for your time.

Speaker 2: Thank you very much, Jamie. I appreciate it.

Speaker 1: Hey, Donna, thank you for doing this.

Speaker 2: Thank you, Jamie.

Speaker 1: So let's start with a quick then and now a question, if you don't mind. What was the relationship like between financial advisor and saver 15, 20 years ago? And where are we today?

Speaker 2: The relationship between the advisor and the investor has really enhanced and become a lot more of a collaborative relationship over the last few years. In the past, the advisor was very much providing products and services to their clients without really having a deep understanding of their preferences or their really deep interests. And I think over the last few years, technology has really allowed the advisor to understand their clients, their preferences, their investments, where they are in their investment lifecycle. Are they just getting out of school? Are they actually thinking about, you know, buying a house and then thinking about retirement and estate planning in the future? So I think it's come a long way and it's really a deeper relationship now.

Speaker 1: So let's talk more specifically about the tools that are at the fingertips of savers now with digitalization. Is it there's more of a product offering between investments that they're open to? Is it different asset classes? Is now real estate an option for people who maybe can't afford to buy a house but can get exposure to it?

Speaker 2: The industry and the firms have really enhanced the product offering for investors. Now, a lot of that access is through new technology. It's through the Internet. We all carry iPhones. We all are constantly looking for information and trying to learn. And when it comes to financial services and wealth management, investors are doing the same thing. They are aware of what new products and services are being offered in the marketplace. Firms and advisors want to ensure that they're educated. So providing information on education and literacy so they make good choices if they're doing it themselves or with an advisor. And it's really becoming an intense marketplace in terms of choice from an investment perspective. Investors can do some of their own investing through a robo-advisor type toolset where they're picking their own investments through a model portfolio. It's all automated. They can manage it themselves, quite frankly, and then they can see how their portfolios are growing over time. Now, an advisor can offer that type of capability but also provide advice on more complex situations, more complex investment decisions, and actually help with the whole lifecycle management as they go through their lifecycle.

Speaker 1: Well, let's talk about that lifecycle for a second. How personal is this relationship now getting to? They want to know how many kids. I want to have the fact I want to save up for a house in the Catskills so I can go hiking every weekend. So, I mean, what do they want to know about me?

Speaker 2: Quite frankly, they want to know everything about you. An advisor really is around that relationship, not only with you but with your partner or your family. And it's about a deep understanding of that relationship. They want to ensure that they're helping you make the right decisions. And in order to do that, using tools like financial planning tools, sending out digital marketing, and being able to see what interests you have all help them make that educated decision and help with your decisions moving forward. Using financial planning tools, sending out information, and getting feedback from you in a digitized manner allows the advisors to easily process that information either themselves or using AI tools. So then they know and can understand how best to engage with you, build that relationship, build your confidence, and ensure that you're getting ready for a good retirement in the future.

Speaker 1: Yeah. Well, that will make me feel better about making the right decisions. I don't always make the right decisions. So what are the big trends you're seeing now? Let's talk about the future of wealth.

Speaker 2: Big trends are the ability to provide tools and investments to the affluent investor that typically in the past, the high net worth or mass affluent only had access to. Tools such as financial planning tools, understanding data aggregation as an example, being able to look at all of your investments across all of the firms that you deal with, the advisor can now see the full picture for you too in order to make really good financial choices on your behalf. And then when we look at ROI, you know, with the ability to process large amounts of information, the ability to provide personalization, how an investor wants to be contacted, how you want to be kept up-to-date on your portfolios, etc., that's really becoming key to an advisor on how they service you.

Speaker 1: And just a final question on ethical investing. Is that something that's a real topic right now? You know, younger generations are very keen to be investing in the right kind of things.

Speaker 2: You know, there's a huge part of the marketplace that ethical investing is top of mind, and that goes really back to understanding your client and what's important to them. So the ability to send out surveys, questionnaires, and information, the ability to see what is of interest to you, what have you read, and then take that information back and have a really good conversation about the types of investments that you may want to be invested in really enables that conversation to ensure that you feel that your advisor understands what's important to you. And that will just grow that relationship as you move forward.

Speaker 1: Donna, this has been nothing short of splendid. Thank you very much for your time.

Speaker 2: Anytime. Thank you, Jamie.

Speaker 1: James, it's an absolute pleasure to meet you.

Speaker 2: Nice to meet you too. Great to be here.

Speaker 1: Let's jump straight in, if you don’t mind. I want to talk about digital transformation in the world of wealth. But first, let's go back a little to give this conversation some context. Historically, what has the relationship between the advisor and the client looked like in terms of typical interaction and control?

Speaker 2: It's a great question. I think one thing that remains constant in our business is that it's a people business. Over the years, the dynamics of how those relationships are managed have changed. Certainly, the mediums of communication have evolved. But at its core, it’s still about getting to know somebody and developing good, old-fashioned relationships. Historically, the focus has been primarily on investments. You had your traditional financial advisor recommending products and specific actions related to investments. That's evolved into a more holistic view of financial wellness and planning. Instead of quarterly checkpoints and product-specific conversations, it’s now much more focused on, “How do I meet this objective?” which requires higher engagement and more frequent touchpoints throughout the year.

Speaker 1: You just used an expression that I really liked—financial wellness. It sounds like a bit of a buzzword these days, but what does it really mean? Is there more to wealth than just trying to save money and make as much of it as possible?

Speaker 2: It’s a human experience, right, planning your finances? It could be a goal about retirement, maximizing returns, or saving for your child's education. Sometimes it’s about planning for a big-ticket item like an expensive yacht. Conversations have become more life-oriented, shifting beyond just accumulating wealth. Clients now want advice on managing their tax burden, liquidity needs, and risk, among other things. It’s more than just traditional investment advice; it's about life planning.

Speaker 1: Are you seeing a big difference in product demand between younger and older generations? I assume younger generations have different ethical views on where they want to invest compared to older generations. Is that a real dynamic today?

Speaker 2: Absolutely. When you look at wealth transfer on the horizon, understanding the interests of the next generation—whether it’s ESG criteria or passion projects—is critical. Across the board, we’re seeing increased digitalization due to the pandemic, and it’s a cross-generational trend. People from different generations want to engage in new ways and have personal interests accounted for, whether it’s investment diversity or new products.

Speaker 1: You’ve said before that it takes a village when it comes to wealth management. There are more roles being required of financial planners today—tax advice, lifestyle advice, wellness advice. How do you manage different specialists while keeping a personal touch? Are these roles being filled by the same person?

Speaker 2: It’s an interesting dynamic. Data suggests that about 70% of clients want their advisor to be the primary point of contact for everything—like a quarterback bringing in specialists. Across wealth management firms, changes are happening structurally and technologically to facilitate that. Whether it’s bringing in tax experts or someone well-versed in withdrawal planning for retirees, the goal is a more holistic approach to financial guidance.

Speaker 1: Can you talk about what’s happening digitally in terms of financial education? It seems like the younger generation is more interested in educating themselves—choosing their own products and learning about tax planning. Should financial advisors focus on providing more educational resources, like online platforms and videos?

Speaker 2: Absolutely. We’re in the information age, and there’s more data available than ever before. That’s both a blessing and a curse. Firms need to get better at curating the right educational pathways and investment information to ensure clients aren’t overwhelmed by noise. Whether it’s providing regulatory-compliant and personalized advice or delivering meaningful education about investment products, it’s essential.

Speaker 1: Are there more touchpoints between clients and advisors now than in the past?

Speaker 2: Definitely more touchpoints. That's a development brought about by digitization—clients have more ways to engage with their advisors. But it’s not just about the frequency of engagement; it’s about the meaningfulness. We like to focus on being “smart touch” rather than just “high touch,” curating personal information to deliver more value.

Speaker 1: Looking to the future, Broadridge is at the forefront of product development and technology. What excites you most in terms of offerings for your clients, and what trends are you seeing?

Speaker 2: We’re excited about new technology that helps connect different elements of the value chain. Over the last decade, tech firms have focused on delivering efficient, value-added point solutions. But these solutions don’t always integrate well with the broader wealth management ecosystem. Our recent investments focus on technology that holds everything together, from user interfaces to back-end services. That’s going to unlock greater productivity for advisors.

Speaker 1: What are the hurdles for your clients when it comes to adopting new technology?

Speaker 2: On the client side, the biggest hurdle is offering optionality. Not everyone wants to go fully digital. Many clients, especially older generations, still prefer traditional engagement, and we’re not taking that away anytime soon. On the other hand, younger clients often prefer a fully digital experience, so firms need to be able to service both. For advisors, the challenge is getting them to adopt new technology. They’re often comfortable with how things are done, and if it’s working, why change it? As tech becomes more user-friendly and integrated, we’ll see more widespread adoption.

Speaker 1: Finally, is there anything on your mind that we haven’t covered yet?

Speaker 2: One big area is the potential for true personalization. The promise of robo-advisors was to democratize investment services and offer tailored recommendations. But I don’t think they ever fully delivered on that. With the rise of data integration and artificial intelligence, we’re getting closer to unlocking genuine, personalized recommendations for clients. This is an exciting trend, and AI is going to play a major role in making it happen.

Speaker 1: I’ve learned so much from this conversation. Thank you for your time, James.

Speaker 2: It’s been a pleasure. I’m happy to talk about this anytime.