Digital banking: the opportunity for wealth managers
6 November 2017
Digital technology is coming of age in wealth management - streamlining processes, freeing up resources for value-added activities and allowing providers to target new segments.
Jeremy Boot, Senior Product Manager, Temenos
The traditional wealth-management model has been unchanged for years: a personal service underpinned by years of specialist experience. Not anymore. Just as in many other industries, digital technology is starting to play a role in improving customer choice, and helping wealth managers enhance and support their existing business and take advantage of new opportunities to offer new services.
"Technology will support and enhance the RM – client relationship. Hybrid advisory solutions will offer the best of both worlds."
Driven in part by higher customer expectations, particularly among the younger generations, and against a backdrop of more regulation and the rising cost of running legacy systems, wealth managers are turning to a new suite of tools, such as robo-advisers, data analytics and real-time services, to help them offer a more efficient, yet tailored, personal service.
Jeremy Boot of Temenos explains: “It’s really about streamlining investment management, combining automation with straight-through processing. Yes, there are the new solutions that grab the headlines, but as we move up the client tiers we find these being combined with access to an RM into hybrid solutions as well as being deployed internally for RMs to facilitate the generation of investment advice.”
"WealthSuite’s digital capabilities include robo-adviser, helping wealth managers streamline the provision of personalised investment advice.”
In this way, technology allows financial institutions to target new market segments – providers traditionally focused on the top end are already rolling out solutions for the lower end. And while a trusted, personal relationship will always be very important at the high end, hybrid solutions using data analytics, for example, will free up the RM’s time. This will allow them to focus more on higher added-value activities such as onboarding more clients, or on those top-end clients themselves.
“I believe the winners in this market will be those that can best exploit digital technology to really transform the customer experience,” says Boot.
Temenos’ WealthSuite provides the full stack of wealth manager capabilities, including a robo adviser solution that can cater for different models from pure self-service to hybrid to fully advised. It’s omni-channel and comes with customer engagement tools and RT analytics so RMs can provide more contextual and personalised advice.