Holistic insights, communicating wealth impact and platforms for the next generation offer great opportunities for the wealth industry, according to Annelie van den Boomen, Business Developer at We are you.
Challenges: What do you see as the main technology and technology-related challenges for the wealth management sector through 2020?
Digital is the new normal, also within financial services. Your clients use technology daily, including through their easy to use, at any time and place, banking app. So, the main challenge we see for wealth managers is both keeping up with what people expect from digital interaction, and still embracing the importance and value of in-person human interaction. To deliver the advanced digital interaction customers expect, the necessary technology investments must be made, while ensuring a healthy ratio between the revenues per prospective client and that investment. Once basic digital client services and digital insights are in place, it’s key to deliver real value to the personal contact with the banker. Technology can enrich that personal contact and contribute to that value. Technology is everywhere.
When investing in new technology you must keep in mind that a lot of wealth moves down the family tree. As the original client base ages, more and more younger clients inherit wealth. Their investment needs and expectations are different from the older generation. And so is their loyalty. According to the Boston Consulting Group, 61% of young wealthy people switch wealth managers when the digital customer experience is dissatisfying (via online banking and mobile apps). In fact, digital maturity is the third most important factor (next to costs and financial performance) for young wealthy people in selecting an asset manager.
Another important topic that is also connected to this new customer base is impact: what impact do my investments have? What do I contribute to making this world a little better? Communicating your purpose as a wealth manager and living this purpose in every detail of your operations is key. That goes beyond mentioning how you score on ESG in the annual report. True credibility can only be achieved by radiating your purpose in all your channels, visualizing what you do and providing insight to your clients on how they contribute.
Opportunities: What do you see as the main technology and technology-related opportunities for the wealth management sector through 2020?
We see the challenges above also as opportunities. Opportunities to embrace technology and with that deliver a better customer experience.
Enrich the personal contact of the banker.
We see two ways of doing this:
- Collect the behavioural data of a client and use this as a trigger for relevant and personal client contact. For example, when a client has been looking for information on certain investments online, connect to see if they want to get some in depth information on that subject through an in-person meeting.
- Provide the banker with holistic client insights (partially by automatically aggregating data) to enable holistic advice and real financial planning (supported by specific tools), not only for the investments at that wealth manager, but for all assets, liabilities and options.
Connect to the next generation
Creating a good digital experience (online banking and apps) gives your clients insights in their portfolio and implement self-service fitting with today’s human expectations. It can also make use of standard products in the market or make your digital experience tailor made. This can help you get up to par more quickly. Next step is becoming the platform for your clients, enclosing all relevant services for High Net Worth Individuals. These services can vary from buying exclusive art, cars, houses, wines, exclusive tickets to theatre or concerts, charity events, trips to the moon… anything your client base is interested in. You don’t have to build this yourself. You can ‘just’ create an eco-system of relevant partners and integrate their services in your digital channels. And maybe even do this vice versa, after all, you have the same target group. Think about the client data you will be able to collect as a platform!
Impact and purpose
A good digital offering also allows you to communicate your purpose better. But even if you stick to offering your core services online, you can also visualize what impact investments have. In 2020 this can still bring a competitive advantage.
Market focus: When considering your wealth management clients and prospects, where are they currently focusing their technology investments and resources: clients, advisers/staff or their business infrastructure?
We see that the focus of technology investments lies primarily with the end user. We see an increased awareness of the importance of the advisor experience and the technology supporting this. The advisor must be able to service the clients well and create a great overall customer experience. So, our clients need to do it all and we encourage them to have digital and in-person interaction integrate seamlessly. For example, we are improving customer onboarding with them by creating a new infrastructure, improved client experience and automated checks that lower the workload of staff. We expect more investments in smart financial planning and wealth planning tools and concepts for advisors next year.
Within the financial industry, we see a move towards cloud-based solutions. Cloud-based solutions of course offer benefits like scalability and continuity and we see the industry embracing this, which speaks to the increased trust in the security in cloud solutions.
Excite: When you look at the technology capabilities and resources now available to the wealth management sector, as a solution provider, what excites you most in 2020?
What excites us is reflected in our new features in our BankingRight Mobile suite that offers retail banking and wealth management functionalities (native on iOS/Android):
Progressive native onboarding. This is a light onboarding (email, password), followed up by a full onboarding flow through a clear status overview, allowing the client to add the necessary information for full onboarding with a save-for-later functionality in the app. With that, the wealth manager can also contact leads that get stuck in the onboarding funnel. As both solution provider and integration partner we see an ever increasing opportunity to provide a pleasant and quick onboarding by combining validated data and a great customer interaction.
Next to this, the We are you mobile banking solution now integrates with Ohpen's core banking platform, which will enable banks and asset managers to cut down their time to market by 6 months, eliminating the need for complex and long-term integration and/or migration projects. The partnership allows the firms to offer a fully integrated mobile app and back office system, rather than just a website or mobile app.
White label and API-thinking: to support open banking and platform banking initiatives, We are you more and more delivers solutions that enable our clients to address the needs for interconnectivity and ability to scale their offering and services via different business models.
Your support: Finally, as a solution provider to the wealth management sector, what will you be doing in 2020 to help your clients and prospects meet their main technology and technology-related business needs?
We are you will inspire, challenge and assist wealth managers and new start-ups in this market to set up and/or improve their digital client engagement, whilst still addressing and empowering the importance of human interaction where needed. We use our business and technology knowledge within wealth management and private banking, our track record and extensive digital experience inside and outside of the wealth management market. Our proven solution accelerators (BankingRight Mobile and our Robo-advice solution) help make the right business impact with a short time-to-market.