As the wealth management industry evolves, wealth management firms must reinvent themselves and take advantages of cutting-edge technologies to enhance consumer experiences and provide greater personalization. Here are five key things wealth managers need to keep in mind going forward:
- Consumers are not satisfied with current digital offerings. According to a recent survey, less than 50% of respondents were satisfied with mobile and online wealth management platforms, especially regarding accessing portfolio information, executing transactions and obtaining advice/services.
- There is a need to increase investments in product innovation. A recent report found that investments in front office transformation can boost wealth manager performance 8–15%, but many wealth managers feel they are forced to work using legacy systems that don’t allow a seamless and simplified experience.
- BigTechs are the biggest threat to wealth managers. BigTechs like Amazon, Google, Alibaba, Apple and Facebook are expected to be one of the greatest industry disruptors due to their digital capabilities and strong interest in setting up full-service online communities.
- Personalization will be a key area of differentiation going forward. Reports indicate that only about 40% of consumers are satisfied with the personalized offerings of their wealth managers. Wealth managers are advised to prioritize investments in analytics, personalization at scale, data harmonization, management and storage in order give advisors the tools they need to deliver suitable tailored services.
- Artificial intelligence is a game-changer. The adoption of emerging technologies like artificial intelligence, digital analytics and intelligent automation will be critical for enhancing wealth manager efficiency and bolstering consumers’ service experience.