In the company’s latest research-based industry trends report, Info-Tech Research Group reveals that future success in the wealth management industry depends on launching digital products and services tailored to younger and younger clients. digitally competent.
TORONTO, September 22, 2023 /PRNewswire/ – As a variety of industries face the need for digital transformation, the wealth management sector is undergoing a particularly significant transformation. As control of assets shifts from older customers to their often more tech-savvy children, the industry’s traditional products and services are increasingly seen as obsolete. As a result, Info-Tech Research Group believes that wealth management companies must adapt to meet these changing demands. Info-Tech published The future of wealth managementa trends report providing insight into current customer expectations and outlining the paths businesses can take to implement digital transformation to remain competitive in a changing landscape.
Info-Tech Research Group’s “The Future of Wealth Management” plan highlights a strategic, multi-dimensional approach comprised of 12 transformational elements that will enable wealth management companies to understand the trends driving their industry and to maintain their competitiveness. (CNW Group/Info-Tech Research Group)
In the report, Info-Tech explains that the wealth management industry has traditionally relied on a combination of outsourced service providers and bespoke in-house systems. However, these systems were not initially designed to provide the depth of integration necessary for modern digital products and services.
“The wealth management industry offers its clients traditional products and services that are largely segmented based on the amount of account assets and are often entrusted to a single decision maker.” explain David Tomljenovicsenior research director at Info-Tech Research Group. “Engagement was heavily focused on calls or in-person meetings. Client assets were invested according to model portfolios base on client assets, intake forms and “know your client” information. However, younger customers expect robust digital or mobile tools that deliver highly optimized processes, products and customer experiences. »
Currently in the industry, the role of IT is generally focused on support rather than being a strategic business partner. There is therefore an urgent need for IT to evolve its approach and foster a relationship more closely aligned with the long-term overarching business objectives of wealth management companies.
“A commonality between the traditional customer generation and the younger generation taking over is the desire for in-person engagement,” explains Tomljenovic. “As the investment process becomes increasingly digital, personal contact remains an essential part of the wealth management process.”
The report highlights the importance of adopting a multi-dimensional strategy to overcome technological barriers in the wealth management sector, highlighting that the profound changes required in wealth management permeate many aspects of IT. The complexity of the industry’s technological challenges is further amplified by rapidly changing market dynamics, which require substantial changes within the organization, from front-end to back-end operations. Therefore, implementing a comprehensive and successful technology transformation becomes more daunting as it involves multiple elements simultaneously.
Info-Tech indicates that these transformation areas can be broadly classified into three main dimensions, each comprising four components:
- Organizational dimension: Collectively, these components govern how IT organizes and aligns with business needs to ensure thorough and efficient delivery. This dimension includes innovation, enterprise architecture (EA), agile and DevOps methodologies.
- Experience Dimension: The key capabilities needed to drive the deep user experience transformation that wealth management clients demand. The experience dimension includes data, artificial intelligence (AI) and machine learning (ML), automation and security.
- Dimension of infrastructure: Organizations must master these capabilities to meet current customer demands and effectively deliver open, user-friendly, ecosystem-based customer solutions. Infrastructure is an essential part of the transformation process. The key components are ecosystem, cloud, integration and digital.
The company also highlights in the report that generational wealth transfer presents a significant opportunity for wealth management firms that can skillfully manage this transition. Planning the deployment of new digital products and services to meet the needs of younger, digitally savvy customers will be instrumental in ensuring success in a new era.
To learn more about the firm’s findings and recommendations on how IT can help wealth management firms stay current in the digital age, download the full paper. The future of wealth management trend report.
For media inquiries on the topic or to obtain exclusive and timely comments from David Tomljenovicfinancial services industry expert, please contact (email protected).
About the Info-Tech Research Group
Info-technology research group is one of the world’s leading information technology research and consulting companies, proudly serving more than 30,000 IT professionals. The company produces unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely and informed decisions. For 25 years, Info-Tech has worked closely with IT teams to provide them with everything they need, from actionable tools to analyst advice, ensuring they deliver measurable results for their organization.
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SOURCE Info-technology research group
