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Adapting to a New Era of Disruption in Wealth Management

The wealth management industry is evolving quickly. A new generation of clients and changes in the wealth manager/client dynamic is forcing firms to reinvent the experience of high-net-worth (HNW) clientele. Within today’s digital milieu, the industry is feeling the impact of never-before-seen data and analytics innovation, BigTechs dipping their substantial toes in wealth waters, and clients who increasingly voice dissatisfaction with fee structures, according to wealth managers surveyed as part of the World Wealth Report (WWR) 2019.

Wealth Management is no longer immune

Emerging technologies have been disrupting all global industries, and wealth management is no longer immune. Within this new landscape, regulatory compliance will become even more critical, as government watchdogs also catch up with emerging technologies. Moreover, strategically applied APIs and data analytics can offer wealth advisers unparalleled actionable insights from limitless sources.

Most banks recognize the need for flexibility and an omnichannel presence as part of a hyper-connected world. However, the challenge is to ensure that all channels perform efficiently and conveniently to satisfy discriminating HNW clients seeking real-time information.

Fewer than 50% of HNW clients interviewed for the WWR 2019 said they were satisfied with mobile and online platforms; and when it came to younger high-net-worth individuals (HNWIs), around 40% reported lower satisfaction with their primary firm’s online and mobile platforms. Moreover, this younger client segment emphasized their need for individualized attention and personalization.

Therefore, firms will be required to transform their service delivery models with a core focus on client enablement while also empowering wealth advisers. Keeping the client relationship alive, responding to HNWI’s’ evolving needs, and using data and technology to excel amid disruption are no longer options, but necessities.

Time to evolve

As the gates open to competitors with innovative capabilities and fewer barriers to market entry, such as BigTechs, wealth firms must identify their role in an integrated ecosystem. Against the backdrop of a changing wealth environment, firms will be forced to reimagine their business models and redefine their client relationships. To further strengthen client trust and connection, firms can turn to technology solution providers for support, tools, and new capabilities.

The first step is an examination of the client lifecycle ecosystem.

Creating a straight-through client lifecycle process involves integrating a host of internal and external systems and providers that can enhance and enrich compliance, client onboarding, and data management processes. With the help of third-party specialists, future-focused private banks and wealth managers are digitalizing their client lifecycle management process into a fully automated, seamless, and efficient procedure that significantly enhances the HNW client experience. Moreover, it is possible to automate the regulatory review process and enable continued compliance with in-scope regulations throughout the client lifecycle.

The need for a value proposition that differentiates on personal connection remains a success factor for tomorrow’s wealth firms. The key is to build a differentiated and individualized approach in areas where clients expect personalization versus a generic self-service experience. The ability to demonstrate differentiation beyond investment performance is critical. Firms must provide strong connections – either through technology or face-to-face interactions – that engage the client throughout their journey.

For more insights on how the wealth management industry is evolving, and what this means for you, please download a complimentary copy of the World Wealth Report 2019 developed by Capgemini, at