A new study from WealthBriefing in cooperation with Deloitte and Avaloq shows innovation in client experience is among the wealth management industry’s hottest topics.
In the study, 85 per cent of interviewees from the global wealth management industry said their firm will increase its technology spend on innovation in the next three years. These investments are mainly driven by improving client experience, with 55 per cent of wealth managers citing this as their primary motivation. A further 30 per cent stated they are motivated by increasing operational efficiency while improving advisor productivity was third in the rankings overall (27 per cent).
Wealth managers expect a significant increase in digitalisation over the coming years. Their processes are currently considered 48 per cent digitised, but respondents are targeting a level of 76 per cent by 2019.
Despite this, wealth managers felt compliance risks remain a concern. Almost a third saw this as the top barrier to innovation.
Thibaut Jacquet-Lagrèze, Head of Marketing at Avaloq, says, “The study confirms our observations in the technology market. We see significant demand from wealth managers and banks to enable new digital experiences for their clients, advisors and other client-facing employees. They benefit from short implementation times, open architecture and full integration of digital solutions within the Avaloq Banking Suite. Also, we offer our community a unique financial ecosystem where the development of regulatory solutions is based on continued collaboration to minimise compliance costs.”
Daniel Kobler, Partner and Banking Innovation Leader at Deloitte in Switzerland, adds, “Currently, the biggest hurdle is that wealth managers are not yet fully prepared for innovation. In the past decades, the industry has generated such a steady level of profit, it simply hasn’t had to be that innovative. But with margins shrinking, wealth managers need to learn from other industries like manufacturing and telecoms and integrate innovation into their culture.”
Thibaut Jacquet-Lagrèze continues: “Innovation culture is deeply rooted in Avaloq’s DNA. We continue to significantly invest in our digital offering so banks and wealth managers can exceed their clients’ expectations in the digital age.”
Learn more from the recent Innovation in Wealth Management report.