Next-generation wealth managers: Advancing services and personalization with technology A report from Forbes Insights and banking software company Temenos reveals that nearly seven in ten wealth managers believe a virtual platform is essential to improving the customer experience, up from just 25% three years ago.
Nearly two-thirds of wealth managers (64 percent) segment their clients and create detailed, distinct profiles, while around a third (32 percent) are unable to meet the demand for personalization tailored to high-net-worth individuals. HNWI).
The report lists three pathways that will define the next generation of wealth managers: customer experiences enhanced by digital services and personalization, knowledge of artificial intelligence and analytics, and new markets defined by mass investments and alternatives as well as operational efficiency.
Pierre Bouquieaux, wealth product director at Temenos, said offering personalized customer experiences will become the key differentiator for wealth managers.
“Both high-net-worth individuals and affluent investors want to improve their relationships with wealth managers through more personalized services,” said Bouquieaux.
“Technology, from a client perspective, is expected to facilitate more active portfolio management, unlock new insights through predictive analytics, and reveal opportunities that may exist in alternative investments.”
About 86 percent of wealth managers consider AI important in data analysis and personalized insights, up from 67 percent last year.
Additionally, the report reveals that 87% of wealth managers view technology as “important” or “very important” in achieving operational efficiency.
Acceptance of digitalization among HNWIs has increased to 87 percent over the past three years, up from 74 percent in 2016.
The report also said that compared to the last three years, HNWIs and affluent investors claimed better results from more active portfolio management (44%) and better predictive analytics and forecasting (36%).
Temenos added that technologies such as goals-based investing will be vital in the future, having expanded its WealthSuite front office with a goals-based investing module.
The software provider said the module would enable wealth managers to offer highly personalized and client-centric products and services, while making service execution faster, cheaper and more efficient.
The findings come from a survey of 305 senior executives, of whom more than 40 percent are in the C-Suite, a fifth are asset management executives, and 14 percent and 10 percent, respectively , are managing directors and heads of activities in investment banks and private banks as well as 105 HNWIs.
