Panel participants:

• David Navama, CEO & Co-founder, Storyline
• Jean-Philippe Bersier, Director of Sales & Marketing, ERI
• Arash Sorouchyari, Strategic Technology Advisor for FinTechs and Banks

The wealth management industry is experiencing a significant transformation, driven by evolving client expectations, technological advancements, and market trends. During a recent panel discussion at The Wealth Mosaic’s CX Toolkit Roadshow event hosted at the SSE in Geneva (attended by a cross-section of wealth managers, consultants and technology vendors), experts explored how personalisation, technology investment, and cultural shifts can improve the client experience in wealth management. The discussion revealed both the challenges and opportunities facing the sector, providing actionable insights for wealth managers to remain competitive and relevant in the digital age.

The role of personalisation in wealth management
Personalisation was a central theme in the panel discussion, with panellists noting that many wealth management firms are still in the early stages of adopting a personalised approach. The journey toward personalisation in wealth management involves three key stages: prescriptive, adaptive, and last-mile personalisation.

Currently, most firms are stuck in the prescriptive stage, where client engagement is guided by predefined rules and patterns. However, there is growing optimism about the role of generative AI (Gen AI) in advancing firms toward adaptive personalisation. Adaptive personalisation allows wealth managers to tailor services dynamically based on individual client needs and behaviours, creating a more seamless and satisfying client experience. The Swiss market, in particular, was highlighted as one where personalisation efforts are lagging, with many apps still static and limited in functionality. 

To cater to younger, tech-savvy investors, panellists stressed the importance of creating customised, video-driven content. Younger generations expect engaging, easy-to-understand financial content that suits their digital preferences, and video is a powerful medium for delivering this information.

Market trends and changing client demands
Wealth management firms are facing different maturity levels in digital banking across regions. Market trends, such as the "great wealth transfer," are accelerating the need for digital relevance. This refers to the transfer of wealth from older generations to younger ones, who are more inclined to compare traditional banks with tech-driven financial platforms. 

Clients today are looking for a customer experience that goes beyond simple onboarding or transaction facilitation. They expect personalised services across the entire financial journey. In this context, hybrid models that combine AI-driven proposals with human advisors are growing in popularity. These models provide clients with the best of both worlds: the efficiency of AI-powered insights and the personal touch of a human advisor. 

Banks must continue to invest in technology to meet the changing expectations of clients, particularly the younger generation. Gen AI, with its limitless potential for personalisation, stands out as a key tool for improving client engagement and satisfaction. 

Investment in technology and digital transformation
One of the most critical points discussed was the need for banks to make long-term commitments to technology adoption. The panellists acknowledged that while there is significant pressure to adopt new technologies, the wealth management industry faces challenges in measuring the return on investment (ROI) from customer experience (CX) enhancements. Pre-packaged analytics tools can be helpful for firms to assess the impact of their digital investments. 

Moreover, panellists underscored that quick fixes are not sufficient for long-term success. Instead, wealth managers should focus on a 5- to 10-year horizon when it comes to adopting new technologies. Continuous experimentation is key to finding what works, and not every project will succeed – but learning from failures is part of the innovation process. 

As digital platforms become increasingly important, wealth management firms must use technology as an extension of relationship managers. This approach will allow them to provide more tailored services, enhance client engagement, and offer strategic insights that were previously unavailable. 

Leadership and cultural shifts
Digital transformation in wealth management requires more than just technological investment – it demands a cultural shift within management. While top management increasingly recognises the importance of technology, companies may still miss concrete drivers to reduce resistance to change across the various layers of the organisation. The panel emphasised the need for cultural transformation at this level, so that digital innovation can thrive. 

Wealth managers should also consider the varying needs of ultra-high-net-worth (UHNW) and mass affluent clients when developing their strategies. A one-size-fits-all approach will not suffice. Instead, firms need to tailor their offerings based on the size of their institution and the specific segments they target. 

Industry challenges and future outlook
Despite the opportunities presented by digital transformation, the wealth management industry faces several challenges. One ongoing issue is the pressure on fee structures, which has slowed the pace of digitisation. Wealth management firms are grappling with the tension between offering self-service digital platforms and justifying the high fees associated with traditional, human-led advisory services. 

Regulatory pressures have also diverted attention away from digital investments, further complicating the path to transformation. However, there is a growing shift in trust from human advisors to technology, particularly among younger generations. For wealth managers, this means that integrating technology into their services is no longer optional – it’s essential for staying competitive. 

Looking ahead, the panel predicted that future wealth management models will involve a blend of human advisors and AI-powered solutions. This hybrid approach will allow firms to meet the needs of different wealth segments while maintaining a high level of personalisation. 

Key recommendations for wealth managers
Based on the panel discussion, several key recommendations emerged for wealth managers looking to enhance the client experience: 

• Invest in personalisation technologies:
  Begin adopting technologies that enable adaptive personalisation, particularly those powered by Gen AI, to meet the evolving demands of next-generation clients.

• Develop video-driven content:
  Use video as a tool to provide engaging, easily digestible financial insights, especially for younger, tech-savvy investors

• Focus on analytics:
  Implement pre-packaged analytics systems to measure the adoption and impact of new technologies and ensure they contribute to strategic insights

• Promote a cultural shift:
  Encourage middle management to embrace digital transformation and foster a culture of innovation within the organisation

• Experiment and iterate:
  Be willing to experiment with different technology solutions, recognising that not every project will succeed, but learning from failure is part of the process 

By addressing these areas, wealth managers can ensure they are well-positioned to navigate the challenges of the digital age and deliver a superior client experience.

About The Wealth Mosaic CX Toolkit Roadshow:
Following the publication of our CX Toolkit report, we have so far hosted events in Geneva, Zurich, London, with plans to host further events in Singapore and Dubai in 2025. These are free to attend for any form of wealth manager and provide technology vendors an opportunity to sponsor or demo. 

About The Wealth Mosaic CX Report: 
The Client Experience Toolkit 2024 is the first in a new series of toolkit reports focused on key technology themes and tools impacting global wealth management. Each toolkit report focuses on a key industry theme, segment or geography. 

This first issue takes the form of a thematic report and shines a light on the trends and solutions influencing the successful delivery of client experience (CX) in wealth management. It features 11 showcases, each centred around a dedicated CX-relevant topic and related solution. 

You can access the report online here.