Client lifecycle management systems can bring cost savings and provide wealth firms with a better understanding of customers.

Wealth management is a business built on the story of personal relationships, a deep understanding of the client and a highly personalised service. But dig a little deeper and it is clear this is significantly overstated, highly dependent on the front office and relationship manager (RM) and, in most cases, lacking any significant institutional-level process to turn it into a truly engaging, consistent and profitable exercise.

What then happens in the future in a world of more complexity and a more demanding client base? Customisation will become the norm, clients will expect an institutional-level understanding of their needs and expectations, and will vote with their feet if these are not met. 

Time to change
While firms might have gotten away with the RM model of personalisation and delivery so far, even the best RM will not be able to consistently deliver in this new environment. They are going to increasingly need the support of process, automation and tools. 

The industry needs a coordinated and structured approach, where some tasks are automated and the RM empowered rather than bogged down in administrative efforts. If the industry is going to deliver on its promise of personalisation and client experience, while also maintaining profitability and relevance, the role of client lifecycle management (CLM) might be fundamental.

At its heart, CLM manages and coordinates the full process of the client relationship from prospecting and due diligence, to onboarding, maintaining the relationship throughout its duration, through to ‘offboarding’. All in one, not separated and seen as distinct elements. CLM is about the 360-degree view of a client’s relationship with a firm at each stage in that journey.

And that, in the world we are moving into, is a potentially valuable position to have. 

This is where technology players such as Switzerland’s Appway, UK-headquartered WDX and Dublin-based Fenergo are at play, delivering CLM offerings to support the coordination of the full front-to-back client journey, automating various process, integrating multiple systems and tools and, ultimately, supporting a more efficient, intelligent and client-centric organisation.

CLM helps firms map out the full client journey, builds and automates processes against that journey, coordinate services and integrates solutions. Some call it orchestration, sitting between the core banking and/or portfolio management system, and any number of other services the other side be they client relationship management, compliance tools, data tools, advisory solutions, document management, and so on. 

The benefits
The benefits are multiple. First up is cost savings. Wealth managers can automate mundane, repeatable but necessary steps. Client onboarding is a good example where CLM has raised the bar. Automation not only makes this a cheaper process for the wealth manager, it also makes it quicker and more consistent for the client.

"With less manual tasks, relationship managers can potentially manage more client relationships and develop deeper relationships at the same time."

Increased automation also frees up RMs and others to focus on higher value areas. With less manual tasks, RMs can potentially manage more client relationships and develop deeper relationships at the same time. 

With a full view of clients across their journey, firms can gain deeper and more insightful understanding and have more opportunities to engage and more opportunities to potentially cross-sell. A single platform to support this also means data and insights can be more easily shared within the business.

More process and coordination of the right tools at the right time should also provide for a cleaner and better experience for the client. No more putting documents in the post and waiting weeks. 

With an end-to-end client journey to map, guide, track and monitor client activities and needs, compliance necessities such as KYC, AML, risk profiling and suitability reviews can easily be built-in and information collection and document exchange better automated.

Empowering
For any wealth manager to deliver on their promise of a truly personalised relationship and client experience will require not only capable and enabled RMs but a platform that meets clients’ expectations across their full journey. 

The RM, rather than feel threatened by such technologies, should feel empowered and freed from tedious activities. The wealth management organisation may look at the efficiency gains in the short-term but the income opportunities in the long. And the client, for so long the recipient of a very static and limited engagement model, will increasingly be able to dictate how, when and with what they are engaged.

This article was originally written for and published on the Financial Times' Professional Wealth Management website on March 1, 2019. A link to the original article is here: https://www.pwmnet.com/FinTech/Fintech-on-Friday-CLM-a-toolkit-that-benefits-both-clients-and-bottom-lines