Three tips to adopt digital capabilities into your practice

By Craig Hawley

Digital technology is revolutionizing the retirement planning industry — and the world — as we know it. Mobile apps are allowing users to manage retirement accounts with unprecedented convenience, artificial intelligence is improving customer service through advanced chatbots and blockchain technology is offering increased transparency and security.

It’s also something investors are seeking out. According to the Nationwide Retirement Institute’s 2024 Advisor Authority survey, 10% of investors began working with their advisor because of their knowledge or use of artificial intelligence, and 9% began doing so because of their advisor’s use of mobile technology.

However, embracing the ever-evolving digital landscape can be scary, and it’s understandable that some advisors are hesitant to adopt new tools. In fact, according to a Cerulli report, 29% of advisors listed managing technology needs as one of their practice’s greatest challenges. Reasons for this may include limited resources, resistance to change or even genuine mistrust of new technology.

Although it’s clear the benefits of digital tools do not come without risks, embracing these tools is crucial to staying ahead of the competition and helping ensure seamless transactions for clients. For example, in the annuity industry, the Insured Retirement Institute is moving to a digital-first strategy that proposes adopting fast, modern, streamlined processes for each step in the financial professional and consumer journey. IRI is essentially creating standardized rules of engagement for how the industry delivers essential data to facilitate faster transactions and easier management of annuity products.

If you haven’t already, the time is now to at least dip your toe into the digital solutions pool or risk falling behind as your competitors find ways to make new technology work for their practice. Here are a few tips to help advisors begin integrating digital tools into their annuity practice — or adopting the ones recommended by their firms — to help streamline operations and enhance client engagement.

1. Educate yourself and your team on the latest digital trends and tools.

The digital landscape is changing faster than ever, and it’s important to stay up to date on the latest trends and developments. Staying informed about innovations impacting the industry is one of the most important things you can do.

Regularly read industry publications and blogs from fintech companies that are highlighting new tools and technologies. Explore online courses and certifications, such as those offered through LinkedIn Learning, to expand your knowledge about data analytics and digital tools specific to the retirement industry.

You should also talk with your carrier partners about the tech tools they are adopting — and those they think you should incorporate in your practice.

Most important, seek feedback from your clients on their digital experience to continuously improve your service offerings. Nationwide’s Annuity Marketing team conducted a survey with annuity owners earlier this year and found the most valuable resource for understanding annuities is online account access. In fact, 82% of annuity owners surveyed had online account access, with 22% checking it every three to five months and 20% checking it every one to two months.

Just by asking what their preference was, we learned more about what clients are looking for when it comes to digital capabilities and ease of use — something advisors can quickly and easily do in interactions with clients to set themselves apart from the competition.

2. Choose the right tools for your practice.

Adopting the right tools — or leveraging the ones recommended by your firm — can help you stay ahead of the curve as digital technology continues to evolve. I suggest you consider three types of tools as you evaluate what’s best for your practice.

Aggregation tools, which can help consolidate clients’ financial data from various sources into one platform, can make it easier to analyze, provide comprehensive advice and offer personalized recommendations.

Performance reporting tools can generate detailed reports on investment performance, helping you track and communicate portfolio progress to clients, which will improve your efficiency and accuracy.

Comprehensive planning tools can assist in creating detailed financial plans, modeling scenarios and optimizing tax strategies.

3. Embrace artificial intelligence.

AI technologies can help improve efficiency, enhance client relationships and drive business growth. Generative AI can augment work and provide better customer experiences for partners and customers.

For example, you can use generative AI to draft personalized emails and reports, helping ensure accurate and tailored communication with clients. GenAI also can help with administrative tasks, freeing up time for strategic planning and personalized advice. Because it can process vast amounts of data quickly, providing insights into market trends, client behavior and investment opportunities, GenAI can help you make informed decisions and offer better advice. However, it’s important to remember that GenAI is not replacing human intelligence; it is complementing it. Responsible use of AI requires a human-in-the-loop approach to ensure quality, accuracy and ethics.

Integrating digital tools into your practice will not only provide value to your clients but position your business for future success as well. This tech isn’t only streamlining operations; it’s opening doors to financial inclusion, reaching clients who’ve never had access to these services before.

It’s an exciting time to be in the retirement sector, with technology driving growth and opportunity like never before. Embrace these tools to deliver top-notch service and grow your client base. Remember, staying tech-savvy is not optional — it’s essential to thrive in today’s evolving financial services landscape.