In January, I predicted that in 2020 the most successful wealth managers would be those who did the best job of leveraging client, market and portfolio performance data to actively shape client engagement. They would use this data to formulate more compelling campaigns and deliver more relevant, personalised services, I said.
Little did we know that a few months later data would become so central to retaining customers and preserving (let alone growing) AuM, that those who fail to act may struggle to weather the COVID-19 storm. The urgency to act is now far greater, as business continuity could depend upon it.
Digitisation has already happened in wealth management, to a greater or lesser extent. Huge data sets are being collected, offering the opportunity for relationship managers to learn a great deal about customer behaviour and determine next best action for each client. However, the ability of each firm to interrogate and analyse this data, to gain meaningful and actionable insights, varies immensely. Many struggle to transform noise into signals that can be acted upon.
However, wealth managers face a delicate balancing act, now that they are having to consider changing business and operating models, while also remaining compliant and in many cases running remediation projects for KYC/AML. Reviews are needed to determine whether existing IT systems are fit for purpose for the new normal. The pressure is on for front office and support teams to continue providing value-added, proactive client service, while at the same time managing ongoing distractions and conflicting priorities.
Wealth managers must act quickly and leverage data more effectively to cope with the turbulence that we face today, manage the transition from crisis through recovery, and prepare for the vastly different post-COVID world that lies ahead.
3 ways to use data to secure your business
Fundamentally, the vital role that data plays in optimising wealth management operations and enriching client service hasn’t changed. What has changed is the stakes, and the urgency for wealth managers to act quickly, to maintain profitability. For some, it could even be a matter of survival.
27 March 2023
Traditional Wealth Management firms and Private Banks may think that human service will confer a point of difference in time. However, they could be standing on a burning bridge. There are some very compelling reasons for adopting AI technology and automation within your service model, and in time, protecting profitability will likely force action.
3 min. read
23 March 2023
There may be many ways in which a wealth management business ensures the digital functionality of its hybrid model is compliant. In this article, we will focus on three features that should be embedded in the hybrid model solution to ensure greater compliance with regulatory requirements.
3 min. read
15 March 2023
A Hybrid Servicing model is central to the future of wealth management. Its growing popularity has been driven by a more digitally adept population, and a younger demographic of HNW and UHNW investors impacting the current benchmarks for client servicing and accessibility to financial data.
3 min. read
At Wealth Dynamix, we believe a hybrid client servicing model offers the optimal solution – it is efficient, effective, and can support compliance.