The COVID-19 pandemic increased reliance on technology across the world, and the wealth management industry has been no exception. But as an industry where the human element creates so much value, it can be difficult to strike a balance between personal interactions and automated processes. Many firms turn to solutions that allow them to create differentiated client experiences while also serving clients efficiently at scale.
Generational preferences create a need for wealth managers to be able to communicate with clients across a variety of channels. Whether family offices with multi-generational families or high-end wealth managers looking to appeal to clients’ heirs, technology can bridge the generational divide.
While some might worry that increasing automation will reduce the personal touches that set firms apart, many are finding the opposite—that automating administrative tasks frees them to spend more time reviewing and analyzing data to make better-informed recommendations and decisions. But implementing technology without proper planning can limit the ability to add enhancements in the future.
To keep up with the constantly evolving and advancing technology, many firms choose to outsource or co-source some or all of their core investment management technology, as well as operational and compliance workflows. This arrangement helps firms drive greater efficiency, achieve scalability and reduce operational risk, and has the added benefit of being implemented more quickly than an in-house installation.
