- Its not just robo advice
WealthTech spans the entire client journey and the journey the firm takes alongside the client’s actions. From before a client is even a client, to regulatory reporting after a trade, via the entire client lifecycle, there is tech available to support, enhance or deliver at every stage. Boards need to consider is what is appropriate and proportionate for the business model, customer base and strategic direction of the firm.
2. Its not replacing the human touch
Marketing material may sell the firm but the chances are the client will buy into the investment manager, adviser or financial planner. They will tolerate poor performance longer than they will suffer poor administration. Using wealthtech to streamline or automate processes can not only reduce instances of error but can also save time, allowing skilled staff to have a greater focus on the human interactions that build trust, retain clients and generate recommendations for new ones.
3. Its not a passing phase
Where once wealthtech was just a portal, a window through which clients could see their investments, now it is a lens through which firms can see the lives of their prospective clients in order to tailor the sales approach; a porthole that reduces onboarding from weeks to potentially minutes; or a filter that can tailor advice or communications to existing clients. The range, scope and capabilities of technology will not wane but will continue to grow.
4. Its not to be delayed until you start losing clients
For a board to decide what is appropriate, it must consider the firm’s current client base and what its future client base will look like; it must decide whether improving regulatory compliance, addressing margin pressures through productivity gains or delivering a reputation-enhancing client experience is top of its priority list; and it must assess how much human and financial resource can be allocated to the project. This takes time. It is followed by a lengthy period of exploring options, selecting providers and, finally, implementation, testing and roll-out. If a firm waits until it notices it is losing clients before considering technology, the trickle that it noticed could be a flood by the time a solution is implemented. With $10tn of assets due to transfer between generations in the next 10 years, preparing now to serve a digitally native generation before they go looking elsewhere is key to the long-term survival of wealth management firms.
Its not too late. If you are interested in exploring how wealthtech can deliver for your firm then please contact me on georgina@wellhouseconsulting.com.