Vijay Ramachandran, Senior Consultant, TCS Financial Solutions
“Digitization is disrupting the wealth management industry; however, firms are slow to adopting digital when compared to the other players in the banking industry”.
This common refrain has resulted in many surveys and much research being conducted and findings establish that:
- Wealth Management Clients are expecting their wealth managers to provide them with increased digital services to enable continuous access and better control over their wealth.
- Clients still prefer to have an advisor unlike the retail banking industry where the relationship manager is more a facilitator for account opening and introduction to new products. Here, the advisor is looked upon as someone who can add value through intelligent, fruitful recommendations and look after and secure asset.
- In spite of the excitement around fintech-led disruption today, the reality is that these new entrants have been able to only create a wrinkle and in certain parts of the wealth management value chain. Their impact has mostly been restricted to that of automating advice on asset allocation strategies and monitoring of portfolios. More importantly, they have been successful in creating higher expectations around digital innovation in the services offered by wealth management firms.
The new environment provides the necessary impetus and direction to wealth managers to review their current operations from the front-to-back office and innovate business processes to satisfy clients’ digital expectations, while balancing stakeholder expectations and regulatory mandates.
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