The following is a guest blog post by Steve Scruton of Broadridge Financial Services.

For Broadridge’s Steve Scruton, a fate worse than a few lost clients confronts wealth managers who fall behind the digital curve. Such “digital laggards” may lose both their relevance to investors and position in the marketplace. Steve will share his thoughts on how firms can optimize their digital and AI capabilities more efficiently on Friday, April 13 at 10:20 AM ET, during SIFMA’s Private Client Conference. We asked Steve to preview his comments and address several areas of SIFMA concern, including the role of electronic info delivery, the personalization of data aggregation and the challenges of cybersecurity.

SIFMA: In addition to acting in their client’s best interest, advisors are increasingly expected to meet their client’s need for information in a timely, transparent manner. What trends do you see influencing the role of technology in the electronic flow of info?

Steve Scruton: “Acting in their best interest” is a top four client expectation, according to a recent ESI Thoughtlab study. The other three are “anytime access through devices,” “product transparency” and “cybersecurity.” Two dominant trends stand out: digitalization and changing investor expectations. HNW investors have increasingly expressed their openness to turning to an Amazon or Google for their future investment products. Why is that? Customers prefer personalized purchasing decisions. From data aggregation, Amazon and other retailers know more about a customer’s preferences than most buyers can even remember. Factor in changing investor expectations; such as the growing number of millennial investors who want to manage their money in the same way they now shop, socialize, communicate, and learn – all through a range of digital tools, social media, and mobile apps.

SIFMA: In an article you recently wrote in Financial Advisor last month, you said the future of financial advice will require digital leadership with a human touch. What did you mean by that?

Steve Scruton: Advisors must ask “what can I do that a robot can’t?” The answer is “you’re engaging clients by joining them on a journey, a journey through their life.” Think of the digital transformation of wealth management as connecting with clients in a whole new way. Meeting one-on-one with a client is simply more meaningful. When clients know an advisor is listening they share more. Cognitive computing, AI (Artificial Intelligence) and machine learning make the personal possible for every interaction or transaction.

The right cognitive tool brings together data, content and technology and delivers the optimal, personalized experience to each client every time.

SIFMA: Can personalization create cybersecurity risk?

Steve Scruton: With client data all in one place it is easier to keep it secure as well as compliant. Here’s what personalization can do: Think what an advisor could gain by starting each day with smart insights and recommendations to help keep track of important tasks and new opportunities. Segmented client lists help them deliver personalized campaigns that turn prospects into clients while growing the client relationships they have. As they employ the digital tools investors prefer, advisors can still provide the human touch, such as coaching when it’s needed.

SIFMA: What kind of information will wealth advisors leverage in the future?

Steve Scruton: To have successful client relationships, advisors have always had to know what makes prospects tick. Where lengthy quarterly lunches may have been yesterday’s preferred method of differentiating client needs, today it’s a client’s data. If you’re an advisor and I’m your client, you need my data to even know me well enough to communicate effectively enough to engage and interact with me.

SIFMA: Will the advisor of the future be torn between managing clients and managing data?

Steve Scruton: Not if they make the move to the digital high ground soon. The advisor of the future – what we call the Next Generation Advisor at Broadridge – has to be the best financial consultant, life coach and friend they can be to their clients.

Rather than compete with technology, these next-generation advisors will embrace it to do what they do best—understand their customers, build empathy and trust, and meet their individual needs, particularly in times of personal change and market volatility. To do this successfully will require a new breed of middle-back office professional that is data-empowered and laser-focused in their advisor support.

But that doesn’t mean the advisor must work 168 hours a week. Sometimes the communications effort is as simple as sharing a relevant article on social media or making a personal recommendation. Digitalization is a two-way street, too. It provides feedback to the advisor on client concerns, investment history, communications preferences and much more.

The important thing for wealth managers to consider is that clients want their business interactions to be prompt and personal, using the communications channel of their choice. For advisors and their firm to stay relevant, the digital experience they provide to their clients must be as good as their client’s favorite retailer. That means advanced analytics tell each firm what motivates each prospect. For example, in the case of a market drop of 1%, one type of communication is appropriate for the nervous investor, while another message – or no message at all – may be appropriate for the more long-term minded investor. Acting on distinctions such as these will lead to greater client loyalty and additional business.