Using New Technology to Apply “Old” Principles
By Bryan E. Kelly, CFP®
“No machine can replace the human spark of spirit, compassion, love, and understanding.” - Louis Gerstner, Jr., former CEO of IBM
At The Kelly Group, we often refer to ourselves as the “Norman Rockwell Town Doctors of Finance.” That is, we pride ourselves on basing our wealth-management services on the old-fashioned values of neighborliness, kindness and empathy.
Which raises a question: In a world of ubiquitous smartphones, supersized high-definition monitors and ever-evolving artificial intelligence, how do we best use modern technology in a manner that adds to, and does not detract from, our ability to service clients in a very human way? As a Nobel Prize-winning historian once said, “Technology is a useful servant but a dangerous master.”
To master technology, we must embrace its virtues while recognizing its limitations. Take our state-of-the-art financial planning software. It helps us to efficiently: prioritize client goals; track our clients’ income and expenses, assets and liabilities; update investment information; and use all of those inputs to project the probability that the financial plan will succeed. In addition, the program allows us to adjust assumptions on the fly and examine various scenarios, instantaneously recalculating the results.
It’s a great tool — as long as we never forget that technology does not replace heartfelt conversations based on trust and caring. The results on the screen mean nothing if they do not connect with and reflect the reality of the client’s dreams and fears.
Another valuable tool we use in our client relationships is our electronic “vault.” Among other functions, this tool allows clients to securely and conveniently share important items, such as estate documents. But this efficient tool does not replace the serious estate planning discussions that help the client prioritize their testamentary wishes and create a plan that helps prepare their loved ones for their passing. When family members need to know that they will be okay no matter what, technology cannot compete with the personal touch.
Our “vault” also helps clients monitor their investment accounts at their leisure. Of course, technology tempts investors to “do it themselves.” The internet makes it easy to research stocks and bonds, mutual funds and ETFs. The quaint pictures from past decades of men in suits following a ticker-tape machine showing the “live” results of stock market trades help remind us of the miraculous nature of the internet that allows everyone to track the stock market live.
But technology cannot replace what is perhaps one of the most important roles we play in our clients’ lives — that of behavioral coach. Once we have helped a client develop a customized long-term investment plan, we help them adhere to it. When the media noise is announcing the arrival of the latest apocalypse and is encouraging all investors to run for the hills, The Kelly Group — not an impersonal computer — will be there to say: “We’ve been here before and all of our experience and wisdom tell us you should stick with your carefully drafted, well-thought-out plan.”
Another technological tool is teleconferencing, which allows us to meet with clients virtually. This proved especially valuable during the Covid-19 crisis and remains a convenient way to hold client meetings when there are only one or two items on the agenda, or the client lives far away. But it is a complement, not a substitute, for meeting in person. We’ll never forget our experience in 2008 during the midst of the Great Recession when we held a client seminar at the Maryland Golf and Country Clubs. The purpose of the event was simply to help reassure our clients that “This Too Shall Pass.” I believe the fact that we met in person made a huge difference. Clients were so thankful for the informative, earnest and comforting discussion that many came up afterwards and hugged us. You can’t hug on Zoom.
And when it comes to the phone, we believe the old way is best. During business hours, we make every effort to ensure that when someone calls our office the first sound they hear will be a live, human voice. We do not want our clients, friends and neighbors to be greeted by disembodied electronic instructions. This policy is just one more small way in which we try to emphasize the worth of the personal connection.
We’ll leave you with the last lines from a short story, about an evening when technology — smartphones, the internet, etc. — suddenly went on the fritz and everyone had no choice but to reconnect with each other face-to-face. The story concludes: “And in that city of steel and glass where technology once ruled, the human warmth that had been rediscovered that night began to spread, lighting up the lives of people who had forgotten how beautiful it was simply to be together.”
This short story, including the above lines, was written at our behest by artificial intelligence (ChatGPT). We just couldn’t resist asking an avatar of the latest technology to acknowledge the inestimable value of old-fashioned, Norman Rockwell-style human tenderness. I95 Sponsored Content.
Bryan e. Kelly, CFP® is managing partner and principal owner of The Kelly Group.