The new face of wealth management
After what we have been through last year, wealth management will never be the same. It sounds probable, but what will really change?
According to reports and opinions of experts from the Big Four of consulting companies, some of the technological and digital changes brought by the pandemics into the wealth management sector will stay for good and will become the new normal in the future. This is not bad news: some sources report that advisers who have implemented digital tools have seen a 77% increase in client retention. Having this in mind, shifting funds to operations and IT departments seems to be a good move for banks and wealth management companies.
The benefits of digitalization spread across different areas of business. Some of them will not vanish after we deal with the pandemics. This applies to interactions between customers and advisors, onboarding new customers using self-service tools, reporting for clients and using robo-advisory or artificial intelligence to support customer decisions.
Adjusting to the new normal will consist in designing the future model of advisory services which, despite the accelerated digital transformation, must be multi-channel. Account managers will stay at the heart of customer relations, however they will be supported by digital solutions that will improve efficiency, convenience and scalability of the business.
The development of fintechs made robo-advisers enter the main stream, so even large institutions must have such weapons in their arsenal. Using algorithms to generate investment advice for individual investors based on their risk profile may both reduce the costs and attract new, tech-savvy customers. However, we cannot forget that wealth management is still a sector driven primarily by relations. The customers want to contact real advisers, especially when markets are unstable. Summing up, wealth management companies will rather look for hybrid-advisory services that combine human knowledge and experience with technological skills of robo-advisers.
Implementing platforms and bigger emphasis on digital channels is currently more important than ever before. To remain competitive and take full advantage of the hybrid approach to robo-advisory, wealth managers will have to implement more digital front office. In order to ensure better user experience, when choosing the right platform, emphasis should be placed on onboarding the customer and communicating with them.
In the era of remote interactions, the customers get investment reports from their advisers in various forms and faster. It is highly appreciated by the customers and it drives the demand for improved reporting tools for customers.
The Covid-19 pandemics also forced some changes that will settle in for the long term, when the world gets back to the new normal. Prospecting, new lead acquisition and sales are unlikely to be face-to-face only, although advisers are still the key element of wealth management sector. There is nothing that builds relationships better than having lunch or coffee together. Webinars, digital marketing campaigns and on-line prospecting will surely stay and they will be competing with off-line events, conferences and generating new leads during a lunch with a prospective customer.
Digitalization increases efficiency, which is beneficial and increases profitability in the long term. When considering implementation of a digital platform, wealth managers should take into account the changes caused by the pandemics and find a solution that will embrace all of them. Every company should also have its own research to find out what technological tools it lacks most. The customer segmentation and service method should be reviewed and an experienced supplier who will support the new platform and distribution channels development should be chosen.
Do you feel that what was said above applies to your current situation? Comarch Wealth Management can be the right solution to your problems and challenges. Our platform features functionalities that cover all digital [r]evolution changes and it will enable you to give the best investment advice to all your customers. Streamline the daily work of account managers and take customer experience to the highest level with Comarch Wealth Management.
Sławomir Wójcik Product Manager, Business Solution Architect at Comarch
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