| | FEBRUARY 20209digital and mobile tools, omni-channel access, and wealth man-agers providing more client-fac-ing time will all enhance the customer experience.Strengthening technology ca-pabilities, embracing digital transformation & building a 360-degree customer view As part of their future-proofing strategies, wealth management firms are investing in technology capabilities such as cloud, robotics, artificial intelligence, data analyt-ics, and integration of third-par-ty application programming interfaces (APIs).Benefits of emerging technol-ogy in wealth managementAcross the industry today, clients seek personalized offerings. In-vestors, especially millennials, are more tech savvy and looking for digital experiences similar to what they experience in other sectors. Only approximately 40 Percent of high net worth individuals (HN-WIs)said they were satisfied with tailored offerings from their WM firms. According to Capgemini's World Wealth Report 2019, the gap widened among younger pop-ulations with only 33 Percent of under-40 HNWIs reporting satis-faction, compared with 41 Percent of their counterparts over 60. This gap is possibly the result of the ex-pectations of next-gen clients who grew up in an on-demand, person-alized world where brands such as Netflix, Google, and Amazon set the bar. Realizing the environment has changed, many WM firms are focusing on client empowerment by adopting high-impact emerg-ing technologies across the value chain. For example:· Morgan Stanley recently of-fered its more than three-million WM customers an encrypted plat-form through which they can store financial documents and share them with the bank more securely than via fax, email, or snail mail. The Digital Vault employs tech-nology from Box Inc., a California online content-management and file-sharing service for enterpris-es. The new solution is a testament to Morgan Stanley's confidence in shifting confidential records from in-house servers to third-par-ty systems accessed online, or in the cloud. · Deutsche Bank began lever-aging robotic process automation in 2017 to manage repetitive tasks more efficiently. In areas where the bank integrated RPA software, 30 to 70 Percent of processes are now automated, and required employee training time has been reduced. Deutsche Bank has also deployed robo advisors and uses algorithms to personalize client portfolios. To meet client demands for per-sonalization, it is also essential for wealth management firms to build a 360-degree customer view to pro-vide better services and aligned offerings across various stages of the customer's life-cycle. As a re-sult, account aggregation service solutions are becoming more pop-ular. Here, clients can view their entire wealth portfolio ­ across multiple banks, financial institu-tions, and non-bank assets ­ in a single place. Account aggregation will help wealth firms create new value propositions and enhance the service quality. With access to all of the assets and liabilities,advi-sors can also assess the riskiness of client's exisiting portfolio.Transformation begins with a digital strategy & systematic stepsDeveloping a sound technolog-ical approach requires working systematically through a series of steps. First, many emerging tech-nologies should be woven into in-novative new solutions to heighten digital sophistication in the physi-cal world. New systems can help drive innovation, speed, and scale as firms prepare to become wealth managers of the future while con-tinuing to provide personalized value and staying competitive in a dynamic industry. At the same time, firms must maintain their human element value proposition, and harness technology to enable its delivery. Wealth management firms that are able to combine both technol-ogy capabilities and human inter-action will stand out in the mar-ketplace. By leveraging emerging technology solutions in scaling and defining new efficiencies, wealth managers can focus on their cli-ents' specific needs and better add value. With deep customer in-sights, wealth management firms can offer integrated offerings and increase the stickiness of clients for the bank, thereby improving the customer's wallet share. Amit Choudhary
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