Winning Digital Strategies for Private Wealth Managers

It’s time for the private wealth management industry to reimagine itself through a digital lens. Kurtosys recommends the use of a single, unified digital strategy for reinvention to be achieved.

What is happening to “wealth”?

Wealth Management is generally regarded as one of the “laggards” within the financial services sector when it comes to digital evolution, but the industry is now having to reimagine itself. The next 10 years will see the biggest transfer of wealth (through inheritance) in the history of humanity. Coupled with the rising mass affluent population, private wealth services are no longer the preserve of the super rich.

It is not so much the so called “millennial” generation that is forcing the need for digitisation, but more so the opportunity presented to wealth firms who are able to use digital to capture the significant growth of the industry and deliver profits whilst servicing more clients with better, more efficient business models.

The business model challenge

The challenge for private wealth firms, from the small single geographic segment boutiques through to the international private banks, is how you get to a sustainable size of business with a client service model that justifies an increasingly transparent fee model. AUM scaling and client service model are becoming the name of the game. Also, the distribution models for many firms is beginning to drive market positioning.

Firms are having to decide if they are truly “advisers” or whether they are investment managers supporting advisers, leaving the landscape of the remaining integrated firms to rethink the process against a backdrop of the many forms of “best advice” permeating through the local regulatory frameworks.

Digital is great – but what about the personal touch?

There are clear “digital” paths in the wealth industry that marketing and client services executives are now having to consider. Whether the customer is an adviser or an end client, the digital business model will serve to provide a richer, more immediate customer experience. It will enable marketers and client service groups to converge their faculties into a single unified experience for clients to receive and submit important documents, view client reporting and securely message with their relationship manager. This will undoubtedly save costs but also allow for the scaling and servicing of many more clients.

But what about the human touch? At Kurtosys we believe the winners in the wealth management industry will be those firms who embrace digital, but also use digital to power the effectiveness of the Relationship Manager and their supporting teams. The roles for these individuals is modifying too. Clients want to speak on the phone (or via video) more. Clients want RM’s to travel to them for face-to-face meetings. Clients need to talk to experts at the drop of a hat. We believe that with the right digital strategy, one which combines and re-energises the experience of the end client and the Relationship Managers, is a model that will prevail.

What’s the strategy?

The winning firms need to carefully map out the digital processes that can interoperate to give both the end client and the RM’s a modern, scalable experience. Using InvestorPress from Kurtosys, a mobile and desktop enabled ecosystem with deep integration into CRM systems, provides the necessary record keeping and client history that facilitates sound advice and transparent communication.

A compliant set of tools is needed to help end clients feel empowered without losing the tremendous value of having a trusted human advisor. An ability for end clients to declare their digital satisfaction by opting-opt of antiquated paper processes from client reporting to consent management is paramount. We believe at Kurtosys that a single unified digital strategy can be constructed for wealth firms of all sizes. It just takes the know-how and experience.

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