Wealth Management is undergoing a period of intense technological transformation spurred by changing client needs and expectations including digital-first experiences, lower fees and the need for more information at their finger-tips.
ThoughtLab’s ‘Wealth and Asset Management 4.0’ neatly summarises the state of play through the following customer-centric statistics:
For many firms, this is putting technology-enabled change at the top of their management agendas. Indeed, ‘61% of firms’ within the industry indicate their technology budget is ‘set to grow even larger over the next two years.’ No doubt, Covid-19 has something to do with this – according to McKinsey’s Global Survey of executives in 2020, the digital disruption presented by the Covid-19 pandemic has accelerated the digital transformation process by three or four years. It is important to stress the word ‘accelerate’ here. Covid alone has not created the need for transformation; it has merely served to highlight a pre-existing transformation need. In 2022, a Capgemini report stated that 95% of banking executives say ‘legacy systems and outdated core
banking modules’ are still inhibiting ‘customer-centric growth strategies’.
Given this background, it can be tempting for firms to jump head-first into transformation programs. But rarely is it feasible – pragmatically speaking or for budgetary reasons – to transform on a wholesale basis. Firms must prioritise; pick and choose what to transform first. The business case plays a key role in that process; arguably the central role. As for what the business case production process looks like. Well, typically, firms will calculate expected financial benefits of a given transformation proposal and offset those against the expected costs, enabling a picture of the total value of the proposal to the business and of the return on investment. On the face of it, it’s a rather simple exercise. Yet the following statistic from Gartner may give pause for thought; 35% of transformation projects fail to prove out their original business case. Clearly then, there are certain pitfalls to be avoided during the business case production process. Avoiding these can help a firm ensure that they are not one of that 35%; that they are making the best possible business decisions at a given point in time and achieving the results they expect.
10 October 2022
As we celebrate 10 years supporting wealth and asset management firms, we lay out how you can win with Wealth Dynamix starting with these 10 reasons.
3 min. read
3 October 2022
Hubbis hand-picked a panel of wealth management experts to join Gabriel Chan, Head of APAC at Wealth Dynamix to focus their attention on the needs and expectations of the next generations of Asia’s private clients.
3 min. read
21 August 2022
The premise for our Digital Dialogue discussion with Hubbis in July was that Relationship Managers will continue to be central to the delivery of productive client relationships in the Asian wealth management industry, particularly for the healthy HNW and UHNW segments.
3 min. read