How can wealth managers overcome current challenges to get ahead, now and in the future?
As part of our “Spotlight on…” webinar series, management consultant Jamie Forrester, Associate Director at Alpha FMC, joined Wealth Dynamix Managing Director Antony Bream to discuss current technology trends in wealth management.
With the bulk of assets rotating continuously, wealth managers should expect the majority of AuM growth to come from existing clients, and should go the extra mile to ensure client retention. During the COVID-19 pandemic (and beyond), successful wealth managers will adapt quickly and effectively to remote working, strip cost out of operations without impacting client service and pay special attention to risk profiling, suitability and investment selection. Technology underpins all of these requirements, and those who had not already cracked the digital transformation nut pre-COVID will find it hard to catch up.
Wealth managers capture huge quantities of high quality data, which has immense value when it is fed through to the front office for use by relationship managers to meet client expectations. However, poor and insufficient flow of data from back- to front-office is one of the main reasons cited for technology implementations being slow and ineffective. To be successful, wealth managers must convert tomes of client data into an aggregated, context-specific and usable form, which relationship managers can use to serve clients more effectively.
CLM is one of the most exciting areas to address for wealth managers. Get it right and it can impact new business sales, share of wallet with your existing client base, advisor efficiency, staff morale, regulatory compliance, operational costs, and much more. When technology is fully-utilised to automate and enrich CLM processes, the results are outstanding, from first client engagement, through onboarding and then (critically) to manage ongoing client relationships.
No one is saying this is easy. The key is to focus first on the desired business outcomes and quick wins, then develop a phased approach that is easily adopted and use toolkits to ease implementation. Train staff well, to encourage adoption and secure their buy-in for future change. Only then will you be ready to tackle second phase projects, which require more impactful change but reap greater rewards.
To learn more about how Wealth Dynamix and Alpha FMC partner to help wealth managers to scope, plan and implement a CLM project, watch the webinar.
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At Wealth Dynamix, we believe a hybrid client servicing model offers the optimal solution – it is efficient, effective, and can support compliance.