While technology has always played a core role in the wealth management sector, its role and importance is undoubtedly expanding. This is the result of numerous factors, not least the growing capacity of technology to solve challenges and create new opportunities.

For an industry that has been both a heavy user of technology but, simultaneously, not necessarily an avid lover of technology (at leadership level, at least, prefering historically to focus on the human side of the business as the key differentiator), the new central role of technology as a core enabler and potential main differentiator of their businesses (or even as table stakes in an increasing set of areas), raises numerous, hard-to-overcome challenges. 

How does the market marry its deeply-set sense of what it is and how it does business with the new technology-enabled need of what it must do to remain relevant?

In my mind, the fact that the industry's current thinking has evolved (I am not sure that is the right word!) to a heavy usage of the term 'hybrid' strikes me as overly simplistic. Even weak and slightly embarassing if I am honest. Can we not come up with something a little more intelligent?

Regardless, there is a gap to be closed between the old model and the new, where technology is core and centre stage. The thing is, whatever commentary or criticism anyone (including me) throws about, there must also be a recognition that closing the gap is no simple task. Arguably, it requires a root and branch overhaul.

In this insight piece from Accenture, several very interesting facts are highlighted, including:

• 36% of businesses are working with double or more partners than two years before
• 83% of C-suite executives want to maintain the best of legacy while moving to new technologies
• Another 75% believe their organization’s existence will be threatened if they fail to update their technology

So wealth managers need to navigate the technology ecosystem to remain relevant. Simple, right? Wrong. It is no easy task and here are 5 challenges that we see and hear that impact both the needs of wealth managers and solution providers:

• An explosion of needs, solutions and capabilities: one aspect of change in this sector is the growth in the number and complexity of the industry's business needs. It is simply not as straightforward (using that term lightly) a business as it once was. More needs has meant many more solutions now competing to service those needs, all seeking air time. Simultaneously, the power of technology means tech can do more, creating more options and opportunities for firms but, at the same time, adding further confusion as to what is out there, what does it do, how does it compare, where does it fit, and so on. Firms cannot keep up, especially once outside of the few giants that operate in this space.
• Lack of process, methodology and resource: alongside that three-dimensional explosion, the industry as a whole has lacked any real process, methodology or accessible resources to support making sense of these developments and filtering through to find what is right for them. The big boys might have the resource to support their own needs, but the industry as a whole has in effect nothing or very little. It is, as I was told recently, a 'free-for-all' and wealth managers (and solution providers too for that matter) are suffering. Terms like 'fintech fatigue' have risen as a result of this uncoordinated frenzy. 
• A lack of clarity on both sides: I often hear (from solution providers) that wealth managers don't really know what they want, while I also hear (from wealth managers) that solution providers are not great at making clear what they do and, indeed, will often claim they can do anything asked of them. There is both truth and exaggeration in here but the point is clear - both sides lack clarity. With so many things to work on and with so much noise in the market from so many voices, wealth managers need to find ways to establish greater clarity of what they want, while solution providers need to do the same around what they do and who for. 
• Time and supporting options: how does the average wealth manager marry whatever technology strategy or need they have with what is available to them in the marketplace? In my experience, while some have some sort of process in place, for most it seems haphazard, frankly broken. It's cobbled together based on who they know, whatever they can get when they have time, who they sat next to at whatever event, etc. Why is that? A lot of is to do with the factors highlighted above, but it is also to do with a lack of time, other things to do and a lack of clear and accessible supporting options. Some end up just Googling it. Not really what Google was set up for and, I can guarantee, they'll miss 90% of what is out there or spend 6 months trying to find it.  
• The gap between reality and the future: finally, there is also a very clear gap between all the hype and marketing effort (both solution providers and wealth managers are guilty of this) and where wealth managers actually are with their businesses and technology needs. AI, Machine Learning, Big Data and all this great stuff is fantastic but potentially misleading to organisations that still pass trades by paper over desks and take 2 months or more to onboard simple client cases (you think I'm exaggerating? I'm not.). Yes, the industry needs to have vision and be excited by the opportunities of the near and longer-term future, but it shouldn't be distracted and miss out on getting its technology basics in order first. 

So what's my point? Well, in supporting the wealth management sector to navigate this changing environment and achieve positive outcomes from the opportunities and options around it, it needs support. There need to be new resources and methodologies developed that help the industry keep up and make sense of what is out there and, if they want, to support them on and offline in matching their needs to what is available in the market. Good for wealth managers, good for solution providers.

It is with this theme in mind that we have set about building The Wealth Mosaic.