Chitra Baskar, Chief Operating Officer and Global Head of Funds & Product at Intertrust Group
Technology adoption continues to grow in the wealth and asset management industry, as it sets out to automate processes, increase efficiencies, and reduce costs.
The industry is in a state of flux, facing a huge amount of change – particularly from a generational point of view. Millennials are entering the sphere with vast digital knowledge, and an expectation that their working life should be equally streamlined by technology. There is no longer a place for time-consuming manual processes when there is scope for digitisation.
Although traditionally, the wealth and asset management industries are relatively slow to transform, the Covid-19 pandemic has underlined how vital innovative technology is to business, society, and the economy. The vast amounts of data being curated, not to mention rapidly advancing tech innovations, are the key drivers for transformation in the wealth and asset management sector.
Transitioning to a client-centric model
The industry is transitioning from a product-centric model to a client-centric one. Investing in further digitisation will enable businesses to create bespoke, tailored solutions for clients – thereby catching up with other industries such as banking or insurance that are already providing personalised services. The impact of the pandemic is forcing the industry to adapt much more quickly than expected; the firms that don’t embrace technology to personalise their offering may well be left behind.
Nevertheless, customer-centricity requires more than just a strong CRM system and a first-class user interface. It needs a multifaceted and highly systematic approach that puts clients at the forefront of all operations and communications. The wealth managers of tomorrow will need to have a deep understanding of all client journeys, their unique pain points, and needs. Only by achieving this level of customer-centricity will they be able to develop a winning and resilient digital strategy.
A hybrid approach to client interaction
While embracing technology is inevitable – and frankly, a must – the personal touch of client-facing interaction will not be going away anytime soon. The majority of clients will still prefer to discuss their finances and investments knowing they can actually speak with a physical person. Adopting an omnichannel or hybrid wealth management service model would provide the best both worlds – online and traditional face-to-face services.
Advantages of digital automation
Customers have always entrusted financial institutions with their data – and now it is essential that businesses leverage this with the help of data science and automation. Automated data analysis and artificial intelligence can relieve advisors of their workload and improve the client experience. Advisors can become much more reactive, whether to client demands or wider external factors – and manage client relationships in a much more personalised manner.
Businesses that make the most of digital automation will soon reap the benefits, as it opens up significant cost efficiencies and scaling possibilities. One thing that’s clear is that managers must act now, if they don’t want to be left behind.
