The first post in this three part series brought to the fore critical strategic trends in the Wealth & Asset Management (WM) space – the most lucrative portion of Banking. This second post will describe an innovation framework for a forward looking WM institution.The final post will cover technology architecture and business strategy recommendations for WM CXO’s.
The ability to sign up wealthy individuals & families; then retaining them over the years by offer those engaging, bespoke & contextual services will largely provide growth in the Wealth Management industry in 2016 and beyond. However, WM as an industry sector has lagged other areas within banking from a technology & digitization standpoint. Multiple business forces ranging from increased regulatory & compliance demands, technology savvy customers and new Age FinTechs have led to firms slowly begin a makeover process.
I contend that there are four strategic goals that WM firms need to operate across –
Having set the stage for the capabilities that need to be added or augmented, let us examine what the WM firm of the future can look like.
Improve the Client Experience
The ability of the clients to view their holistic portfolio, banking, bill pay data & advisor interactions in one intuitive user interface is a must have. All this information needs to be available across multiple channels of banking & across all accounts the client owns with multiple FIs (Financial Institutions). Easy access to investment advice, portfolio analytics and DIY (Do it Yourself) “what if” scenarios based on the client’s investment profile, past financial behavior & family commitments are highly desirable and encourage client loyalty.
Help the Advisor –
On the other side of the coin, most WM advisors lack a comprehensive view of their customers. This is due to legacy IT reasons due to which their interactions with clients across multiple channels takes up a lot of their work time but also results in limited collaboration within the bank when servicing client needs.
Other “must have” capabilities –
Digitize Business Processes –
Strategic investments in Business Process Management (BPM) systems, Big Data architectures & processing techniques, Digital Signature systems & augmenting tactical document management systems can result in a high degree of digitization. This leads to seamless business interoperability, efficient client operations and an ability to turn around compliance information quickly & more efficiently over to regulatory authorities.
Invest In Technology to Drive the Business –
Big Data & Hadoop provide the foundation to an intelligent approach to unifying data (ingesting, mining & linking micro feeds with existing core banking data) and then fostering a deep analytical approach based on predictive analytics and machine learning.
So what kind of new age business capabilities can WM firms build on a Big Data & Advanced Analytics based foundation?
The final post in this series will cover a high level technology architecture and then cover specific recommendations to WM CXO’s.