How wealth managers can transform for the digital age
The financial services industry, together with the wealth managers, is now considered to be on the verge of virtual disruption. There’s no denying that digital means has totally helped in cutting the costs and boosting productivity and efficiency through automation and robotics. The rise of digital-based devices and systems has transformed the face of the financial world. Wealth managers are also expected to evolve in line with the unstoppable virtual trend.
Let’s first talk about the major causes of this huge shift:
· Clients is gearing towards omnichannel.
Like for other commodities, people are now depending on the virtual means of acquiring financial products and services. While face-to-face meetings are still relevant, the constant rise of online-based clients is also apparent. People do not prefer solely one channel. They want to have a multi-channel access to financial support. The older generation, in particular, can never let go of in-person contact.
· Mobile is rapidly gaining interaction share.
35% of client interactions are done through mobile means. People are now always on the go and want to have immediate access to online help anytime, anywhere.
· Clients’ raising expectations.
Clients’ expectations of the financial sector are high in terms of digitization. They expect all the key processes like fund transfers, account transfers, account opening, and so on to be online-based.
· Regulation, like the DOL or Department of Labor fiduciary rule, could change the game.
The final DOL fiduciary rule could open great opportunities for well-positioned financial managers. However, this rue could increase the compliance and legal costs and affect the revenue streams of all players.
How Wealth Managers Can Cope
Wealth managers can gracefully deal with the evolution of the industry by understanding the following:
1. Acknowledge that a virtual transformation is a form of culture change. It’s inevitable.
2. Digitization is a door to better possibilities. The opportunities that revolve around the digital world for wealth managers are endless.
3. Focus on the client, not the sale. Be genuine about helping clients, whether via online or offline means. Once a digitally active client becomes satisfied, you can have a free advocate of your profile.
4. Transforming the business comes in various ways. There are lots of models you can use to up your game and get ahead of the curve.
5. Don’t just be “fast”. Create “speeds”. Establish a strong digital engine to go beyond the conventional ways of marketing and service provision.
6. Create advanced metrics to form a competitive edge.
7. Craft a governance model to be the basis of digitizing the traditional structures.
8. Determine the digital capabilities and talent that can create a whole new value using a gap analysis.
9. Develop a series of online analytics to track your progress and identify your strengths and weaknesses.
Whether you’re a client looking for a wealth manager or a financial advisor seeking for support, you can get in touch with experienced financial managers like David Barcomb. You can access David Barcomb linkedin account for easy contact.