bankingciooutlook

Digital Transformation; the Catalyst for Wealth Management Firms

Banking CIO Outlook | Friday, March 19, 2021

The pandemic has helped firms scale with increased trading, flexibility and application usage, offering proof for robust and scalability provided by the cloud.

Fremont, CA: Digital transformation in wealth management has been a crucial strategy, but its adoption has been low as it faces challenges like changing business models, fintech disruption, increasing client expectations, and revenue and fee compression pressures. Also, the COVID pandemic has accelerated a volatile and difficult environment, with digitalization becoming significantly vital.

Improving Scale And Omnichannel Servicing

Advisors want to aim at providing client value and want to digitize tedious and error-prone works. Digitization of account opening, account transitions and e-signatures has helped decrease the mistakes and NIGOs and enhancing operational scale. These initiatives gathered substantial boost with clients and advisors wanting straight-through processing implementing workflow-based tools.

Advisor Enablement is the Key

Advisors need to offer advice customized to the client’s goals and life events as the financial advisory industry moves from a transaction-led model to a relationship-based one. Financial advisors want tools and insights to provide hyper-personalization, providing a comprehensive view of clients and efficiently cater clients at scale. The advisors want a collaborated experience and functionalities like account aggregation, client portals and CRM and client servicing tools. Digital advisor enablement holds significant importance, especially during the pandemic, and firms are increasingly adopting these initiatives.

Cloud Adoption

As many wealth management firms were already on their cloud adoption journey to enhance flexibility, scalability and resilience and decrease infrastructure challenges. The pandemic has helped firms scale with increased trading, flexibility and application usage, offering proof for robust and scalability provided by the cloud.

Operations Transformation

Business leaders need to decide between creating focused-point automation and large-scale transformation. Operations transformation need firms also to revamp their traditional processes to remove inefficient and non-value-adding activities. The results of such changes can be disappointing without implementing design principles.

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