Why Wealth Management Firms need to Digitise their Value Chain

In the current landscape, the need for widespread digital transformation within the financial services industry has become a necessity. The number of younger people engaging with financial services is on the rise, and with this generational shift comes the expectation of real-time access and management of their investments. Regulatory pressures are also pushing for a broader adoption of digital infrastructures across the board, which internally have been shown to improve efficiency and coordination as well as security.

Clients Demand Control

According to research from Broadridge Financial Solutions, “while 78 percent of investors want companies to improve their customer experience, many firms are still struggling to deliver a seamless and personalised digital experience across the customer journey.” As little as 26% of perceived industry leaders are at an advanced stage of delivering upon this expectation, and as a result, clients are jumping ship. Increasingly, client expectations are for a more customer-centric experience, and if they do not feel that they are the primary concern of their wealth management firm, they will take their business elsewhere.

As clients get younger and more tech-savvy, there is an increased preference for digital tools and communication channels over more traditional relationship methods such as telephone, email, or face-to-face interactions. Every aspect of daily life can be managed and controlled via the apps on your mobile device, and increasingly clients now wield a similar expectation for the same instant, transparent, any-time experience when it comes to handling their investments. There will always be a place for in-person interaction between client and wealth manager, but augmented digital solutions are essential to streamline this process and the overall experience.

Digitisation Needn’t be Daunting

A complete digital overhaul of the entire business sounds like a daunting - and expensive proposition - but there are many ways in which adoption of digital tools and systems can actually make your firm more efficient and better coordinated internally. Not only will this help firms retain their existing clients but also streamline the onboarding process to attract more than ever before. Having the right digital tools can help boost relationship manager productivity and effectiveness, as well as improve client experience and loyalty.

One in three executives surveyed by Capgemini said that “critical tasks are still carried out manually, resulting in poor efficiency of staff, and also increasing the risk of manual errors”. The simple adoption of appropriate in-house digital tools can process all these tasks quickly and automatically, improve communication and coordination between departments, as well as make access to account information more immediately accessible to the client. Such solutions will not only result in a marked reduction in human error, but also free up employees from these labour-intensive administrative duties so that they are able to focus on more productive, revenue-generating activities. 

This evolution is essential to keep your business competitive and attractive. Advances in fintech are pushing the envelope daily as to how wealth management firms interact with their investors, as well as the expectations of clients. The marketplace is demanding a shift towards a more transparent and personal approach, as well as a more interactive relationship between advisor and client.

The Relationship is Changing

Investors have a greater understanding and confidence in the industry than ever before, with many insisting on a more hands-on approach. Firms need to equip their advisors with the technology, resources, and up-to-the-second information so that they in turn can deliver upon clients' escalating expectations. With this improved technological infrastructure in place, your firm’s decision-making, productivity, and overall interactive performance will install confidence in your clients and serve to make you more attractive and desirable going forward.

However, companies need to understand that digital transformation is not a quick fix, but a long-term commitment towards enhancing productivity and the customer experience. Clients need to feel that they are in control of their finances, and that their wealth management firm is right there alongside them for whenever they feel they need assistance. The entire perspective of the relationship has shifted, and it is essential that firms are able to move at the pace their clients now expect, with a degree of authority and accuracy to which they have become accustomed in every other aspect of their digitised daily life.

Faster, Stronger, Safer

Adopting new digital solutions across your value chain will not only improve the speed, accuracy, and efficiency that your employees are able to process information, it will also grant your advisors faster, more accurate access to the latest information necessary to serve the needs of their clients, as well as streamlining the onboarding process for attracting new business. Most of all, your clients will have the confidence and visibility to be reassured that their investments are working best for them.

Moving Forward Together

At Buchanan Technology we are committed to helping wealth management firms navigate the ever-changing landscape of financial services. Through the development and implementation of bespoke digital technologies and solutions, it is our aim to help our clients modernise their internal systems, streamline communication channels, and create fast, intuitive, easy-to-use experiences for advisors, employees, and clients alike.