In Part One of this blog, I discussed how intelligent orchestration is a CIO’s only viable solution to overcome the major challenges in FSI today, namely ongoing disaggregation and fragmention. In this installation, I want to show how, as a CIO, you can not only clear obstacles using intelligent orchestration, but also enable new business opportunities and proactively respond to—and even drive—change.
In their 2019 Wealth Trends Research series, the wealth management analyst firm Cutter Wealth shares some interesting observations. They highlight that “as wealth management becomes increasingly digitalized, the lines are blurring internally and externally between traditional financial ecosystems like wealth management, retail banking, regulation and compliance, lending and financing, and insurance. And as these ecosystems converge, we expect that individuals, communication, and data will flow more freely between them.” They also state that “client demand is the primary driver behind this convergence, because clients want an optimized, unified experience to more easily manage their life and to assess their wellness across all ecosystems.”
Image source: 2019 Wealth Trends Research, Cutter Wealth
According to Cutter Wealth, there are both advantages and downsides to the trend of ecosystem convergence. They state that, on one hand, “Wealth advisors should benefit from convergence because of reduced cost of total ownership.” On the other hand, wealth advisors will “need to ensure that they provide the first touchpoint between clients and the firm,” because “with business divisions no longer delineated in terms of responsibilities and targeted client groups, client service could be disrupted.”
Bringing these findings into the context of the previous discussion about “connecting the disconnected” through intelligent orchestration, it is clear that utilizing intelligent orchestration has broader implications than simply improving efficiency; intelligent orchestration done right allows you to prepare for more transformative initiatives and keep up with the technology-driven shifts in FSI.
Indeed, the current business environment is continuously evolving. We’ve seen a strong push for consolidation in the wealth management market, but more and more FinTech and WealthTech startups come on the scene, along with novel service providers.
As a wealth management CIO, you need to provide a solid technology foundation to ensure the agility and flexibility required to address the convergence challenges of today and tomorrow. How? You need to be able to orchestrate a continuously evolving ecosystem.
With such a foundation, you are empowered to become change agents for your firm, enabling your organization not only to respond to change quickly and effectively, but also to facilitate successful business innovations and the creation of new business models.
“Connect the Disconnected” – The concrete impact
We at Appway recognized the crucial relevance of intelligent orchestration long ago, and we created a comprehensive, well thought-out set of capabilities that continuously evolves with the industry environment.
These capabilities allow for boundless collaboration so you can streamline orchestrated processes that connect stakeholders, systems/services, and data in order to create coherent end-to-end processes and user journeys. Working with many organizations in the area of client onboarding, as well as the wider area of client lifecycle management, we’ve seen our customers experience massive improvements thanks to the smart adoption of our technology stack. For example, we have received many reports wherein wealth management firms were able to reduce the average time to open a new account from multiple weeks to less than half a week. In these cases, intelligent orchestration capabilities played an integral role in achieving more efficient and effective process execution.
Our customers usually realize that, once they have revamped their client onboarding process, their newly established technology foundation allows them to address additional processes related to more comprehensive client lifecycle management, and leverage the available orchestration capabilities for additional use cases, like client review, client maintenance and update, and even account closing. The implications are evident: As a CIO, you can look to intelligent orchestration capabilities to reach your target efficiency and productivity gains, increase your operational effectiveness and agility, and, most importantly, keep your competitive edge in an industry that is in a constant state of flux.