Bigger and better was the theme for the Envestnet Advisor Summit in Dallas, which had its largest attendance ever, according to Jud Bergman, CEO of Envestnet, at the show’s first location outside Chicago.
Advisors themselves can be bigger and better by utilizing technology to complement their firms. Bergman addressed attendees during the opening keynote on Wednesday, referring to the Kasparov Principle, which says that humans and machines working together are more effective than either working alone. Advanced technology needs human experience and creativity to create outcomes that work for individuals.
He was referring to the chess champion Garry Kasparov, who combined chess skills with computer programs to beat both supercomputers and chess grandmasters at the game.
“If you didn’t have to worry about the small stuff,” he asked, “what might you use your energy for instead?”
Document vaults, account aggregation and personal financial management apps give advisors a “quantum depth” understanding of their clients and “lay the groundwork for better outcomes for many years in the future.”
Tamarac clients on the Advisor Xi suite have 65% end-client adoption of the portal, Bergman said.
“This is one of the most amazing emergences of new technology that I’ve seen in my 17 years at Envestnet,” he said, noting that just four years ago, that number would have been less than 10%.
The fate of the Department of Labor’s fiduciary rule is not certain, though some in the industry may have hopes that its delay will lead to its death. “I’m not sure that’s the case,” Bergman said.