COVID-19 is accelerating the adoption of technology across the whole-of-wealth industry, but even before the global pandemic hit there were already systemic changes underway and Boston Consulting Group (BCG) makes a strong case for that in this insightful 32-page report, The Future of Wealth Management – A CEO Agenda.
There were several trends mentioned in the the report but here are the top four that really spoke to the importance of technology adoption:
Personalisation: This will be key to success and BCG point to the “winners” being the firms that are able to reach each client at the right time with the right offer or advice. They go on to say that “personalising consistently and at scale in these ways will require a 360-degree understanding of the client, superior data analytics, and the ability to move easily between personal and digital channels.”
Understanding clients: Further to the above, wealth management providers need to adopt direct and systematic methods of collecting and analysing client feedback. BCG contend that advisers will need to develop “mechanisms to capture information across the client life cycle, be it from product use, transaction data, risk profiles, meeting reports, or notes about personal circumstances.
Talent acquisition: Change management and the adoption of technology is going to require staff that understand tech. The report recommends that whole-of-wealth providers “attract a broader array of (staff) profiles, including advisers and analysts with expertise in digital offerings, data science, and behavioural economics.”
Data and digital: There is a need for advisers to commit to technology and not treat it as a trial or experiment. There is a wide gap between those confessing that they could not run their business without technology through to those dipping their toe in the water by testing it with a few clients. Recently, that has started to change. In recent times, usage of the myprosperity platform has skyrocketed by 200-300% across various features such as partner logins, digital signing, and assets/liability tracking.
This has confirmed to us that partners are now starting to take the need for digital adoption seriously. As BCG best articulates this challenge, “Don’t experiment. Wealth management providers must fully integrate digital technologies and data into their business and operating models or risk being left behind.”
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