4 Ways Digital Transformation Will Improve Your Financial Services Business
Digital transformation is no longer optional; it is a critical component of development strategies for any wealth management business. This transformation goes beyond a simple software upgrade and involves the creation of new operational processes that revolutionise company culture and customer experience.
In the financial sector in particular, this encompasses everything from asset management platforms and analytical tools to self-service portals and payment solutions, reshaping how customers interact with their investments.
Below are a few key areas that the team at Buchanan Technology has identified for wealth management firms to invest in digital transformation:
1. Fintech Applications
As clients become more tech-savvy, they now expect to manage their finances via their smartphones. Personal banking apps are now essential, enabling clients to handle transfers, currency exchanges, bill payments, and loan applications without direct bank consultation. Similarly, wealth management and investment apps allow investors to monitor portfolios and receive recommendations based on personal circumstances and previous activity. Insurance and lending platforms provide secure access for managing payments, trades, and applications at their convenience.
These applications can help by incorporating digital fact-finding and onboarding tools that simplify the process for both advisors and clients, including features such as automated document generation and digital signing. These transformations not only streamline operations but also enhance client satisfaction by providing a seamless and efficient onboarding experience (an increasingly difficult challenge due to evolving anti-money-laundering and fraud protections).
As an interesting side-point, I have worked with several clients in the past on adopting such technology, which has enabled them to not only improve efficiency, but also migrate to working remotely, as they were able to conduct review meetings via Teams and Zoom.
2. AI Tools
Advancements in artificial intelligence are transforming client interactions. Predictive chatbots handle daily interactions, while AI monitors financial habits, predicts investment opportunities, and suggests products based on behaviour — significantly more effectively than a human. This reduces the need for person-to-person interactions to gather basic information, enabling advisors to focus on client needs and objectives, making meetings more efficient and productive. AI also helps advisors identify key clients, source relevant documents, and create a more client-friendly experience, saving time for all parties.
A good example is Microsoft 365 Copilot, an AI tool that integrates seamlessly within Microsoft 365 applications to enhance productivity. For instance, a workflow that we have been educating our clients on recently has supported them to improve efficiencies when summarising meeting minutes, communicating action items, and sharing them with each attendee. The AI handles the administrative tasks to produce the summary of the discussion, tag any parties with responsibilities and deadlines, and draft a document that is accessible online, allowing advisors to spend more time on strategic planning and client interactions than office admin.
3. Digitise Internal Operational Processes
The decreasing cost of a lot of cloud-based platforms makes digital infrastructure a viable option for financial services companies of all sizes. This setup provides faster, safer access to real-time information across departments, improving efficiency and accuracy. Automating menial tasks and cross-checking data instantly allows operations teams to focus on value-added support for advisors and clients.
For example, HSBC introduced SmartServe for digital onboarding by leveraging AI, machine learning, and biometric verification. This tool simplifies the onboarding process, ensuring compliance and providing a seamless experience for clients. Curiously, and perhaps by design, these tech benefits are also found within small to medium wealth managers as well, showing just how important (and cost-effective) they are to implement.
4. Next-Gen Technologies
Investors favour firms with the latest, most accurate information on opportunities that offer the best returns with minimal risk. Advanced data analysis and visualisation tools are crucial for success. These tools identify attractive opportunities, report accurate information, assess risk, and relay information to investors quickly. A modern approach to cybersecurity is also vital, protecting investors’ data and assets, and providing confidence and peace of mind.
While AI and automation are the current trends, there is always a need to be ready for the next technology to avoid falling behind on potential opportunities and feeling the need to constantly be playing catch-up (which is also the most expensive way to update technology).
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Speed of transaction, accuracy of information, ease of use, and enhanced security are pivotal areas where digital transformation can help financial services businesses improve their operations and client interactions, ensuring competitiveness in today's fast-evolving marketplace.
When you’re having your next Board or team meeting, we recommend you consider the following:
Fintech applications
AI tools
Digitising internal operating procedures
Next-generation technologies
If you have any questions, please feel free to reach out to us.
