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Wealth firms are boosting HNW-client experience through new technology

Opportunities exist for firms to personalize offerings and strengthen wealth manager/client relationships by leveraging technological advances.

Throughout the last ecade, technology has disrupted industries across the globe. Now, the wealth management industry is similarly feeling the impact. Emerging demographic segments in the high-net-worth (HNW) market are voicing new preferences for tech-driven convenience and a more personalized wealth management approach. This is driving firms to shift from a product-oriented mindset to a focus on service and client experience.

The Facts

Wealth Firms are developing future-proofing strategies that prioritize services and a strong connection with clients as critical value propositions. The move makes sense considering that nearly 85% of high-net-worth individuals (HNWIs) now demand increased digital interaction. This spans the full client service experience, from accessing portfolio information (almost 88%) to executing transactions (87%), and obtaining advice/service from wealth managers (84%) – according to the World Wealth Report 2019.

Successful business models will differentiate beyond essential services by incorporating digital elements that support both wealth advisers and clients. Firms that can track clients’ demands across each wealth management touchpoint will be positioned to deliver a differentiated end-to-end client experience.

As enhanced service experience becomes a prerequisite for HNW clients, firms should empower their wealth managers with the appropriate tech-powered solutions.

Leveraging Emerging Technologies

Some critical emerging technologies, such as artificial intelligence (AI) and robotic process automation (RPA), are making waves throughout the value chain. There has been noticeably increased adoption and maturity across all functions. Financial institutions are also looking to adopt built-in accelerants to boost their innovation-to-market strategies. Application Programming Interfaces (APIs), if used correctly, can become those accelerants.

For example, wealth firms and private banks are turning to Dublin-based Fenergo, a provider of client lifecycle management software, for its innovative suite of tools, which seamlessly integrate front, middle and back office systems using an API-led approach, enabling efficiencies of up to 82%.

Through its advanced APIs, Fenergo’s Digital Client Orchestrator solution provides a steel thread that digitally directs the client journey through all internal approval processes. This ensures fast, compliant onboarding, from any front-end channel including mobile, web, desktop and in-person. Wealth management firms are also collaborating with Fenergo for core anti-money laundering, know-your-customer (KYC), and tax-screening functionalities.

More and more wealth firms are finding that choosing the right third-party support can relieve internal pressure and enable a high-functioning integrated ecosystem.

Third-Party Technologies

Once firms begin the journey to new sustainable service models, they must ensure they are ready to support the change. To truly reap benefits from emerging technologies and digital transformation efforts, an effective change management process will include people and process elements as well.

Within today’s era of specialized offerings, wealth firms need to take advantage of external tools and focus on their core strengths. Firms with high-end strategic wealth management capabilities can prioritize client relationships while leveraging third parties for technology tools, and expertise in areas such as tax and compliance. Conversely, an external partner with expertise in building products (and technology tools) can team with wealth firms or wealth manager networks to showcase their distribution and client relationships.

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