The Next Digital Transformation Isn’t About New Tech, It’s About Better Adoption

Cambridge Investment Research, Inc. Chief Technology Officer Sean Van Moorleghem discusses the transformative impact technology will continue to have on the financial services industry and says tech’s true power does not lie in the next innovation, but in how firms construct, integrate, and build out their entire tech stack to encourage adoption. With many focusing on the next breakthrough in AI capabilities, those losing sight of the foundational elements of their digital ecosystem will not be equipped to capitalize on those breakthroughs.

Financial services tech teams that are getting digital transformation right are the ones who see their mandate as building a holistic, harmonized ecosystem instead of capturing iterative innovations as they emerge. After all, adopting the most revolutionary AI tools and integrating them into a broken process is not transformative; it’s an exercise in self-delusional AI-washing.

What does success look like in today’s digital landscape?

Successful, tech-forward firms don’t consider the introduction of new technological capabilities as merely a matter of implementation, but rather part of a continuous process improvement. Just as data is not knowledge, new tech, in and of itself, is not a solution; it needs to be part of a well-thought-out plan. That plan begins with the right mindset: tech leaders must have concrete ideas about the outcomes they are seeking, be intentional about solving specific problems, and establish processes to ensure adoption. Those outcomes need to directly correlate to higher level business goals. There must be accountability and measurement. There must be transparency and honesty around the projects they work on, the results that they hope to achieve, and the metrics that illustrate the successes or shortcomings of their approach. The firms that practice this mindset will see higher returns on the tech investments they are making.

A true competitive advantage has less to do with technology and more to do with the strategic plan behind it. A technology component can enable transformation, but the tech does not exist in a vacuum. The business must be all-in on driving comprehensive transformation, and that could be anything from reimagining core processes to modernizing legacy business models to reimagining client experiences.

The elements of a winning strategy

Have a result in mind and pivot when needed:

If the introduction of new functionality is seen as just a technology project, your results may vary. Any valuable digital transformation must be done alongside the business, and include proper change management and training steps.

A “test and learn” mindset:

Start small to minimize risk, maintain short feedback loops, build momentum and improve as you go. As Beckett said, “Try again. Fail again. Fail better.”

Focus on governance:

Cybersecurity is a constant concern. Work produced using AI needs at least the same level of review and oversight – often even more. Firms must build a governance framework to address questions such as: Where do we need to keep a human in the loop? Where do we not want to rely on AI? Where are the regulatory boundaries that we still need to consider when it comes to suitability?

Continuous learning:

We’re utilizing AI-driven technologies heavily at Cambridge, and our associates are a key part of that effort. We’ve ensured extensive and ongoing training is included in our tech planning.

Listen to your constituents:

Cambridge advisors are, by nature, problem solvers, and we do our best to learn directly from those we support. Their feedback helps us better understand their challenges and plays a critical role in how we evaluate, adopt, and implement AI solutions designed to alleviate their pain points.

The human touch

The humanity of the advisor-client relationship cannot be replaced because situations that need empathy and care remain at the core of the advice business. Done right, technology can augment an advisor’s ability to deliver that uniquely human element. I believe there will be a big differentiation in service levels between firms that have simply bought a tool, and those that have truly made technology part of their DNA.

Ultimately, I don’t think the winners are necessarily going to be those firms who reacted to the headlines or made the biggest dollar investment. Rather, they will be those who invested with the right mindset and maintained a disciplined approach to turn innovation into lasting transformation.