[Digital Vaults continue to rapidly evolve from a “nice-to-have” virtual equivalent of a safety deposit box for critical advisor and client-facing documents into a “must-have” technology to power a more engaging and competitive advisor and enterprise-wide service model. Such is the nature of technology that requires the ongoing development of robust applications which are driving advisor and wealth management tools and capabilities, ultimately changing the face of the industry for the better.

Digital Vaults are a good example to explore as to how they have developed from simple storage and basic functionality to enterprise solutions built for compliance and operations efficiency, and now, with the advancements of Artificial Intelligence (AI) and Large Language Model (LLM) technology, to quickly summarize documents, extract critical information, provide contextualized action items, offer actionable insights and analytics, and much more. This evolution is materializing into a more comprehensive servicing and enterprise engagement strategy that can transform financial institutions and wealth management firms into delivering modern, high-touch wealth and advisory relationships by providing better insights, deeper engagement, and more value across all stakeholders and family members in the client relationship.

To better explore this advisor technology evolution and AI-powered Digital Vaults, we reached out to Institute members Daniel Kenny, Chief Executive Officer, and Kristian Borghesan, Chief Marketing Officer, of FutureVault – a category and industry leader of Digital Vaults and pioneer of the Client Life Management Vault™. Having developed their Digital Vault technology platform into a best-of-breed solution for the wealth management industry, we asked questions to better understand how they developed their Digital Vault technology and where they see this technology going to power deeper advisor–client relationships and enable better holistic family financial outcomes.]

Hortz: Can you share with us your experiences in how Digital Vaults have been evolving in their development and benefits for the financial services industry? How did they go from a “nice-to-have” to a “must-have” in the industry?

Borghesan: There are quite a number of factors and reasons that have contributed to the evolution of Digital Vaults, namely Digital Vaults-as-a-Service like FutureVault, moving from a “nice-to-have” into an absolute must-have component and critical piece of the everyday technology stack.

Overall, we think a large part of this really boils down to the evolving landscape of the industry as a whole: client expectations and behaviors in general have changed and continue to change; service models and engagement models have shifted; technology and providers continue to offer “more”; and ultimately, the role of the modern firm and advisor has changed as a result.

From the perspective of the Digital Vault, there is a necessity for aggregation, centralization, security, client experience, and providing a single source of truth in one spot, for all stakeholders that solves for the once disconnected workflow and document handling, now enabling firms to grow, scale, and repeat.

Digital Vaults bring a new value paradigm to the table, enabling firms to dynamically work closer with clients, their centers-of-influence, and the clients’ extended family. Traditionally, document exchange and handling platforms are siloed in their approach as far as the utility and the experience they provide. Digital Vaults now encompass and span across the entire enterprise from head office all the way through to clients and their families.

Hortz: How have you seen this evolution playing out from what you are hearing from your industry prospects? How is it manifesting?

Kenny: In my time as CEO here at FutureVault, I have witnessed a significant shift in how firms approach their technology stack. Initially, Digital Vaults were often considered a secondary component or ‘nice to have’, but today they are (as they absolutely should be) one of the first key decisions made when designing a tech stack and not relegated to an existing “Documents” feature within a CRM or portfolio management system. This evolution reflects a growing recognition of the criticality of documents and the need to move from merely being data-rich to being both data-rich and information-rich. The centralization and aggregation capabilities we offer are now understood as foundational to effective data management, operational excellence, and superior client service.

As the market continues to recognize the power and utility that Vault platforms bring to the table, the industry is increasingly understanding that documents are not just regulatory necessities but valuable sources of rich, contextualized data. This realization has driven firms to leverage AI and private LLMs to unlock the full potential of this data, enhancing client relationships and supporting enterprise-wide operations.

Hortz: What impact do you see that the addition of AI technology will have for Digital Vaults usage?

Kenny: By integrating AI into Digital Vaults, we are not only making data more actionable but also complementing broader AI strategies, whether for large institutions or smaller firms. This synergy between Digital Vaults and AI is transforming how firms operate and interact with clients, making digital vaults a strategic imperative rather than an afterthought.

By enabling precise data extraction and hyper-personalization, AI will fundamentally transform how firms and advisors engage with clients, facilitating more meaningful conversations and moments that matter. At its core, this technology enhances the ability to deliver personalized advice, strengthen relationships, and elevate the overall value proposition of financial services to their clients. We are already seeing this play out in real-time and proud to be on the forefront of delivering this level of intelligence and experience within our Vaults to the market.

One thing to bear in mind is that AI and private LLMs are only as effective as the data they leverage, which is why the rich, contextualized content within Digital Vaults is crucial. The CRM will only contain CRM related data, same for the financial planning system, portfolio management platform, etc. Each of those systems may offer their own AI/LLM features, but the data is siloed and therefore the “AI” value offered by those isolated systems will be limited. Our Vault construct serves as the centerpiece of all critical documentation, providing the necessary content that makes AI actionable and invaluable. The ability to contextualize and summarize data from multiple documents and Vaults allows for real-time, actionable insights that benefit advisors, business leaders, the enterprise, and most important – the client. This synergy between AI and Digital Vaults ensures that every stakeholder gains material value, driving efficiency and enhancing decision-making across the board.

Borghesan: As Daniel highlighted, AI and private LLMs combined with the Digital Vault construct afford material value for all constituents and stakeholders.

At the Enterprise Level, this augments back-office workflow, operational efficiencies, information governance, and helps accelerate an enterprise-wide data strategy without the expensive, time-consuming effort to build traditional corporate data lakes.

At the Front Office Level and for Advisors, this helps augment planning for the delivery of advice, improves the client engagement model, and ultimately enables firms to earn more primary client relationships at scale.

For Clients and Households, it is all about enabling a better understanding of personal and financial situations while offering capabilities to help organize, structure, and optimize clients’ personal lives.

Hortz: How technically proficient do advisors have to be in order to be able to deploy these capabilities in their business? How are you designing your technology to be user-friendly?

Borghesan: User experience is not just prioritized, it is baked into our firm’s core internal values to ensure that advisors of all technical proficiencies can seamlessly deploy and benefit from our capabilities. Our technology is designed with a strong focus on user experience, catering to everyone from enterprise administrators to individual advisors and clients.

We have implemented robust automation features to streamline operations. In addition, we have launched our Zapier integration to help advisors seamlessly create and augment workflow by connecting to 7,000+ third party tools. We have also launched new capabilities such as automated oversight for expiring documents, and enhanced dashboarding functionalities to provide an aggregated view of all Vault and User activity in one spot.

These innovations and capabilities are designed to simplify complex tasks reducing the need for extensive technical expertise. By automating repetitive steps and integrating intuitive functionality, we enable advisors to efficiently manage and leverage Digital Vaults without needing deep technical knowledge. Our goal is to ensure that our technology not only drives operational efficiency but also enhances usability, making sophisticated capabilities accessible and beneficial to all users.

Hortz: Where do you see we are going with Digital Vault technology? What are the implications and possibilities for the future of the financial services industry?

Kenny: FutureVault was conceptualized with a view that the aggregation of critical documents when coupled with AI will ultimately improve the quality and personalization of financial services for clients. And to no surprise by our team, this is precisely what we are witnessing beginning to play out in real time, with Digital Vaults becoming a critical centerpiece of the enterprise and client value proposition.

Over time, with the development and advancements of AI in conjunction with a Digital Vault, enterprises will be able to accelerate their AI strategy while ensuring that all facets of their organization are connected and their clients are the centerpiece of their business where they rightfully belong.

The Institute for Innovation Development is an educational and business development catalyst for growth-oriented financial advisors and financial services firms determined to lead their businesses in an operating environment of accelerating business and cultural change. The Institute is a proud supporter of NAIFA and its Business Performance Center. We operate as a business innovation platform and educational resource with FinTech and financial services firm members to openly share their unique perspectives and activities. The goal is to build awareness and stimulate open thought leadership discussions on new or evolving industry approaches and thinking to facilitate next-generation growth, differentiation, and unique client/community engagement strategies. The institute was launched with the support and foresight of our founding sponsors — Ultimus Fund Solutions, FLX Networks, TIFIN, NAIFA, NASDAQ, Advisorpedia, Pershing, Fidelity, Voya Financial, and Charter Financial Publishing (publisher of Financial Advisor and Private Wealth magazines).