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Digital Themes

Digital Wealth Management

Digital wealth management provides financial advisors with the digital tools they need to create seamless client experiences across all devices and platforms, allowing them to scale solutions to reach more customers. High-touch consultancy has always been a critical part of the advisor relationship; however, in the digital age, clients expect financial advisors to get up to speed quickly regarding their needs, wants and goals to provide personalized financial advice. Digitization of the financial services industry allows firms to share data-driven insights with advisors that encourage engagement and strengthen relationships.

Wealth management firms face a common set challenges in their attempts to leverage digital technology to engage with clients, and many of them are related to data collection. The client interactions of most firms are characterized by a vast collection of data that is often fragmented and scattered across an entire organization. A lack of third-party data (on spending and saving habits, values, and interests, as well as related transactional data), also makes it more difficult to deliver customized insights and relevant services. Connecting firms with automated marketing tools and technologies offer data-driven insights and the opportunity to engage in cross-channel strategic messaging.

Even when digital wealth management is adopted at a firm, the rate of adoption is low. This is often due to the resistance of advisors to leverage data-driven insight across channels, and that the technology may not be user-friendly. Inadequate training of support staff can also leave client support teams ill-prepared to handle inquiries that result from data-driven campaigns. To realize successful digitization, it is equally important have the proper support and training in place throughout an organization.

Once digital transformation is achieved, wealth management firms can

  • Improve client engagement through self-service and automation. Digital transformation of the wealth management industry has resulted in better digital experiences that engage clients on their terms. While automated services may never fully replace the advisor client relationship, using a robo-advisor or automated investing offers customers a tailored approach to their personal goals in real time while significantly reducing fees.

  • Realize greater efficiencies. Investment management firms are leveraging artificial intelligence (AI) and machine learning to automate tasks, including client communications, document verification and financial background checks. Using these technologies, a wealth manager can quickly sort through key information to provide more in-depth, personalized portfolio advice and financial plans to clients at a fraction of the time it would normally take them.

  • Free up time for value-creating activities that drive growth. Due to the transactional nature of the financial services industry, wealth management firms tend to work in silos. Using AI and machine learning to automate straightforward, repetitive processes and transactions also frees up time for employees to come together and engage in more value-creating activities. Leveraging intelligence and analytics-driven insight gained from automated client interactions can also lead to better decision-making across an organization.

  • Streamline data storage, retrieval, and security. Financial institutions engage in countless transactions characterized by the huge trail of paperwork they leave behind. Digital files are easier to store, retrieve and share securely across organizations in seconds. Using automated processes to archive or destroy these files at a predetermined time period also helps with organization, maintenance and retention of information that is useful to an organization, and in quickly disposing of information that is not.
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