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WMS TECHNOLOGY TRENDS Personalised experiences
An increased focus on the customer experience has heavily impacted wealth management firms over recent years, Kate O’Flaherty reports. The sector has been greatly affected by regulation, specifically 2012’s Retail Distribution Review (RDR), which requires companies to charge upfront for services rather than earn sales commission from product providers
his is in addition to a growing number of tech savvy consumers demanding personalised interactions with their wealth managers. It is seeing the industry having to mimic the experience offered by the likes of Amazon and Google. Customers want to communicate through digital means and if the interaction fails to meet their expectations, they will take their business elsewhere. It is therefore no surprise that wealth management companies are looking to adapt their business processes, and the way they approach customers and maintain relationships. “We are used to being able to log on and check our balance at any time,” says Nick Stebbing, Head of Wealth Client Solutions at Pershing. “Wealth managers are increasingly enabling these types of solutions; they are very aware that a poor user journey can have terrible consequences.”
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Companies are starting to invest in digital and self- service capabilities to provide better and more effective interactions with clients. The industry is aware technology can help, states Stebbing. But there is, at the same time, a need to further cut costs and increase efficiency to improve bottomlines, to generate more efficiency post-RDR. They also require the ability to manage costs and make effective capital investment.
With this in mind, the vast amounts of information being produced by systems, dubbed Big Data, has significant revenue potential. This is because using predictive analytics to process structured and unstructured data helps to better understand clients as well as
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enhance their experience and loyalty. Wealth managers are then able to provide personalised and relevant recommendations for clients while time is freed up for other activities.
“By deploying analytics, firms can better manage information and understand their clients’ profiles and investment strategies,” Kostas Kotsiopoulos, global sales director, Profile Software says. “Client onboarding tools allow firms to better analyse client data, comply with regulation and provide a tailored approach to their needs.” In addition, data analytics is helping firms to understand where they might be under-performing, enabling them to react quickly to any issues, according to Jeremy Boot, Product Manager, Wealth Digital Channels, Temenos. The challenge now is how to manage this data and best exploit it. “Where volumes of queries grow significantly, we expect a complete review of how banks organise their data. There is a need for a split of fast, scalable, read-only reporting databases separated from transactions.”
Many companies are failing to organise their data properly, instead letting it sit in silos. If information remains in disparate channels it doesn’t show the entire view of a client, Alois Pirker, Research Director, Aite Group, observes. “I think the industry needs new engagement platforms for the client and also for the adviser – because the adviser is also consuming data and using the systems.” This is important because the engagement level is underpinned by data. “With
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