| | FEBRUARY 20208By Amit Choudhary, Chief Financial Officer, Capgemini Financial ServicesAmit brings a rich and diverse experience of a seasoned CFO, a curious engineer, an engaged management consultant, a hands-on P&L manager and M&A in some of the industry leading organizations. He has held positions in Capgemini Group Capital Allocations Committees and was the Chairperson of FS India Leadership Council.Ashift in consumer prefer-ences, a more financial-ly-literate client pool, and exacting demands from millen-nial investors are making tech-nology tools `must-have' assets in the wealth management (WM) industry today.Traditionally, the wealth man-agement (WM) industry has re-lied primarily on human touch and advisor insights to attract investors, build product options, and drive firm growth. Now, firm executives are realizing that a thoughtful technology plan is a fu-ture-proofing necessity, especially with the competitive challenges posed by the entry of BigTech into the industry. In order to keep current inves-tors happy while working to grow the business, WM firms are turn-ing to WealthTech, a compatible joining of wealth and technology to produce digital solutions that enhance personal (and institu-tional) wealth management and investment. WealthTech firms are gaining ground by leveraging their digital acumen and agile work style to profitably redefine wealth business models. In fact, WealthTech game-changers such as robo advisors, micro-investment services, and digital brokerages are already making a transformational impact on the industry.What has WealthTech got that incumbent firms need?· Robo advisory: Based on digital platforms that provide automated, algorithm-driven financial plan-ning services, robo advisors offer convenient and transparent online portfolio management of private assets. Noteworthy robo-advisory firms include Betterment,Wealth-front and Scalable Capital. Robo tools can help traditional advisors reduce time spent on administra-tive tasks. There are now more than 200 robo advisor firms in the United States that offer some combination of investment man-agement, retirement planning,and overall financial advice.· Process Efficiency: The combination of fee competition, rising costs, and asset growth puts extreme pressure on wealth man-agers. Meanwhile, regulatory re-quirements are driving up costs in the traditional wealth business model. Therefore, firms must manage higher volume with fewer resources while ensuring optimal utilization ­ making technical ex-pertise a critical capability.· Omnichannel Access: In today's digital world, interactive ­ anywhere, anytime, on any device ­ content has become common-place. So, not surprisingly, savvy investors want real-time and cu-rated content that caters specifi-cally to them. WM firms that are prepared to leverage omnichan-nel communication can improve client-advisor relationships across all touchpoints.· Customer Experience: In-vestors expect WM service on their terms, with a simple, transparent approach that is personal and rel-evant. More convenience through THOUGHT LEADERSHIPINCUMBENT WEALTH FIRMS MUST BOOST TECHNOLOGY CAPABILITIES TO INNOVATE & KEEP PACE WITH INVESTOR NEEDS
< Page 7 | Page 9 >