Using technology has become a part of everyday life. Needless to say, this has brought about a huge change in client expectations from banks or wealth managers too.
A report by Avaloq, a wealth management firm, shows that the mobile users are expected to grow to 4.9 billion by 2018. It also shows that the annual growth rate of mobile banking users is expected to grow by 40% in 2016. Although many banks and wealth managers have a multi-channel strategy in place, the full potential of digital channels is not yet currently being realised; online communication, self service and marketing through digital channels are all underdeveloped,” says the report.
Another recent research jointly published by Avaloq and Delloitte shows that wealth managers are planning to invest in technology, with client facing and advisory processes becoming their key priorities. The report titled ‘Evolving Operating Models in Wealth Management and Innovation in Wealth Management’ shows that 85% of wealth managers will spend more on technology to deliver better client experience.
Today’s clients are tech-savvy and see the use of online channels, mobile devices and social media as part of their everyday lives. Clients therefore expect user-friendly technology to make financial decisions, complete transactions and facilitate communication with their financial services provider.
On the other hand, opinion about robo advice was mixed. Only a fifth of participants are actively pursuing this, while half appear categorically against robo-advice. In general, wealth managers still view robo-advisory offerings as very immature.
Correspondingly, over half of respondents consider relationship and quality service to be the top value-adds for clients. Also, wealth managers are keen to keep customer relationship management close. Almost nine in ten do not outsource relationship manager CRM and advisory workplace. As for investment advisory processes and portfolio management, 86% and 83% have chosen to keep these activities in-house.
The report is based on a survey of 65 wealth management professionals across UK, Switzerland, Luxembourg, Hong Kong and Singapore.
To get more insights on the wealth management space in India, Cafemutual is conducting its 2nd edition of Cafemutual Confluence: Wealth Management on June 7. For more details, visit our website www.cafemutualevents.com
