Phil Di Iorio, CEO, J.P. Morgan Private Bank discusses how new digital tools are changing the industry—and driving interactions with clients.
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GF: How can digital tools make advisor-client interaction more effective?
Phil Di Iorio: Digital has become a critical topic for the industry, particularly with the rise of fintech. It’s easy to see why. The landscape is evolving and clients are taking a more active role in defining their interactions with us—they want to engage with us how they want, when they want and where they want. What we are seeing is they are not only comparing us to others in the industry, they want their experience to be as seamless and simple as all of their other online experiences.
At J.P. Morgan Private Bank, we think of digital as a complement to our advisors. We want to use technology to help our advisors better serve our clients, and to enable our clients to do more on their own when they want. As one example, we are developing new digital solutions that will enable clients to access intellectual capital that is tailored to their individual needs and interests, and create a personal library of items of interest to explore later.
GF: What is the best strategy to cope with the risks and rewards of market volatility?
PI: Our main goal is to help clients achieve their long-term objectives, and the portfolios we construct with them are created with their long-term goals in mind. While we may make adjustments along the way as market conditions change, an important part of this long-term approach is helping clients look beyond short-term volatility. One of our top priorities is advising clients to stay the course with their long-term investment plan and not be distracted by volatile markets.
That said, we are constantly looking for opportunistic investment ideas for clients, and market dislocations can be great opportunities for clients who are willing to take action. In today’s environment, we are looking at ideas in private credit, tactical opportunities in emerging markets, and sector-specific equity solutions in areas like consumer and technology.
GF: How do you find the best integrated team to advise each of your clients, and what, in your opinion, makes a dream team in Private Baking?
PI: For us, it starts with recognizing that every client, and their situation, is unique. Once we have a strong sense of their needs and goals, we can build a team around the client that includes the appropriate specialists to help them achieve those goals. Bankers serve as overall relationship managers, who partner closely with investment specialists on developing individual investment plans, with credit specialists on lending strategies, and with wealth advisors—many of whom are former estate-planning attorneys—on strategies from trust and estate planning to philanthropy.
That’s the true power of the integrated team—you have an advisor who understands their clients and who has the support of specialists that can help solve a client’s needs across both sides of their balance sheet.
We’ve also found that in some instances advisors can have greater impact with clients when they specialize in certain types of clients. Take technology as an example. Many technology entrepreneurs have similar investing behaviors and financial needs. By having a deep understanding of that specific type of client, an advisor is better able to identify and serve their needs.
