Wealth Managers Must Digitize or Risk Becoming Obsolete
Nearly every industry sector is taking advantage of modern technology, yet many in the financial sector aren’t as quick to adopt digital offerings. Wealth managers can’t avoid digital services much longer without putting clients and profits at risk. Clients want digital options and the wealth managers that provide them will be the ones to succeed.
A report by Capgemini is discussed in “Wealth management must embrace tech,” posted by John Ginovsky on BankingExchange.com. The study compiled and analyzed the responses of over 5,200 high net worth individuals and 800 wealth managers within 23 major global markets and suggests that clients within the financial sector aren’t the only ones demanding better technology. The report indicated that 55% of the wealth managers surveyed weren’t happy with existing digital capabilities and 39% would consider leaving. On top of that, the study suggests that nearly 56% of firms’ net income could also be impacted by client attrition. Clients using automated advisory services increased from 49% in 2015 to 67% in 2016 and 47% of the high net worth individuals use peer-to-peer platforms for investment ideas on a weekly basis.
Replace Legacy Systems with Innovative ERP and CRM Solutions
It appears as though money could be one reason more wealth management firms aren’t taking advantage of new fintech and other digital services. While budgetary constraints may be difficult to overcome, the lack of modern management technology could continue to put pressure on profits, especially if clients and wealth managers leave your firm for a competitor. Deploying modern technology doesn’t have to be a major investment, especially in this digital era when business management solutions have become more affordable than the highly customized, legacy systems of the past.
An enterprise resource planning (ERP) solution offers a powerful platform for managing financial operations, portfolio management, order entry and risk analysis operations. When seamlessly integrated with a customer relationship management (CRM) solution, you will gain an even greater understanding of customer needs. Dashboards, business intelligence features and other powerful analytics offer insights into business trends and customer behaviors which can then be used to improve services, boost sales and drive growth.
Modern technology for wealth managers and financial services firms is necessary to succeed in this digital era. Contact AKA Enterprise Solutions for more information about replacing outdated legacy systems with more efficient and affordable ERP and CRM solutions.