How Digital Vaults Can Transform a Financial Services Business

[A key structural component toward digital transformation of financial services is digital vaults. This technology can transform the way financial firms organize, manage, store, and deliver client documents; onboard and retain clients; attract talent and elite advisors; manage compliance and audit readiness; and provide advisors with a competitive edge to materially improve the engagement and relationship they have with new and existing clients—and their families.

To better understand the technology and applications of digital vaults, we reached out to Institute founding corporate members, Daniel Kenny, CEO , Kristian Borghesan, CMO, and G. Scott Paterson, co-founder and executive chairman of Canadian Fintech firm FutureVault—a leading provider of secure document exchange and digital vault solutions for the financial services and wealth management industry. We asked them questions to better understand the benefits and implications of digital vaults.]

Bill Hortz: What was your motivation for launching FutureVault? What industry challenges do you face?
G. Scott Paterson:
Years ago, I needed a place where I could access all my financial accounts at once, in one place. In fact, I realized that I wanted to access all of my point solutions (we’re all adding more and more point solutions every day) in one aggregated point. This was the initial genesis for building FutureVault.

Fast forward to today, my colleagues and I believe the world is about to see the rise of what will become one of the greatest industries ever created: personal life management. We firmly believe that within five years, every person will have a Personal Life Management Vault where they will store and manage their personal, legal and financial documents, including your driver’s license, passport, bank statements, life insurance policies, car rental documents, children’s report cards, vaccination records, etc.

We believe this new paradigm will change the way the world does business by saving people countless hours and costs through the efficiencies that result from using digital vault building. Personally, mine Personal Life Management Vault has just reached a new milestone as the 10,000e document has been filed. I sleep better at night knowing that all my key documents are in my safe and that my trusted advisors (accountants, insurance agents, doctors, lawyers, etc.) are authorized to manage their documents in my safe.

We started our journey by building a B2B2C platform because we believe that Personal Life Management Vaults will initially be deployed by financial institutions striving to extend their value propositions to their customers. In the midst of building our platform for the ultimate customer/consumer experience, we discovered that the FutureVault platform had become equipped enough to add material value to an organization’s head office and front office (advisers). The next five years promise to be very exciting as we pioneer the sea change that is coming to the wealth management industry.

Horz: Can you explain to us what exactly a digital safe is?
Daniel Kenya:
A digital safe is the virtual equivalent of a vault when it comes to storing critical documents, data and digital assets, but with the benefit of our patented software that can simplify and manage life. number of a person. Our digital vault platform resides in the cloud and leverages all the benefits of data availability, redundancy, and low storage costs. Most importantly, Vaults leverage our bank-grade security model to encapsulate these documents, data and digital assets in a secure environment giving our customers the best of both worlds.

Kristian Borghesan: In addition to what Daniel mentioned here, we strongly believe and are beginning to see that digital vault platforms are becoming the next iteration and the future of secure document management by offering businesses (and their advisors ) responsibility, efficiency, structure, conformity and protection. – all areas that allow organizations to adapt document management practices at all levels of their organization and, above all, to extend and improve the value proposition offered to their customers.

Hortz: How do you uniquely design your technology to meet industry challenges? What are your main pillars of differentiation and value that you offer to firms and advisors?
Traditional document management solutions come with a few challenges for businesses and advisors. It is not uncommon for these systems to focus on the valuation of a function or a “level” of an organization; typically this ends up being either a back office and compliance focus, or the advisor. This results in a highly disconnected document processing workflow between front, middle and back office teams as well as key stakeholders involved in the process chain. This usually results in considerable professional time spent managing unnecessary manual tasks.

Another significant challenge, which is under massive scrutiny in the industry, is that the needs of the investor, or the end customer, are almost always ignored. This results in a less than optimal experience when it comes to accessing, managing, and protecting personal and financial information. Our founder, Scott Paterson, recognized this shortcoming which was the driving force behind the creation of FutureVault and the provision of personal life management vaults.

Fortunately, we were able to clearly identify these challenges, which allowed us to build a unique and innovative approach to managing documents and the processes they are associated with through a multi-level solution where all the actors involved – front, middle and back – office teams, as well as customers and households, benefit and gain considerable value.

Borghesan: At FutureVault, we often refer to three fundamental pillars of value. The first is to increase operational efficiency and improve productivity across the organization. The second is to enable businesses to confidently meet information security and compliance requirements. And above all, the third is to improve the digital customer experience while improving the advisor-client relationship.

Hortz: What are the particular benefits and use cases of connecting front, middle and back office teams through a digital vault?
Our B2B2C model for delivering personal life management digital safes requires us to integrate into the natural flow of documents within an organization, from generation to delivery to the customer. For example, the monthly statements provided by a wealth advisory firm traverse multiple levels from custodian to back-office for enrichment, front-office to ensure advisor visibility, and ultimately to the client in their vault. digital.


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