Delivering Excellence in Wealth Management

Global wealth managers must adapt to a market environment that’s evolving more quickly than ever before.

Client needs, shareholder expectations, stricter new regulation and advancements in technology are driving future business models and shaping their requirements.

Evolving client expectations

Clients’ demands are changing beyond recognition. One of the biggest generational shifts in the history of humankind, along with technological factors like smartphone penetration and increased app usage, are placing ever-higher expectations on wealth managers. Today’s clients want their private wealth to be viewed and managed holistically.
This goes beyond financial asset allocation to span all assets, liabilities and life plans. Clients want wealth managers to deliver better solutions for after-tax wealth preservation and performance. And the ultra-low interest rate environment has made clients more price-sensitive; all this means they expect new forms of support which are advisory, not only product-driven.

Digitalisation of the Wealth Management sector

Consumers and clients alike communicate around the globe with the latest apps and buy online based on the AI recommendations of digital providers. Wealth management clients are demanding what is already par for the course in the retail industry: full use of digital infrastructure capabilities. Although some aspects of client interaction will still be person-to-person and stick within the traditional advisory process, clients and their advisors should also be able to opt for smart and purposeful technology-driven support.

Software-based tools enable the industry to collect data from a variety of information sources, and providers such as social media platforms or credit card firms. Sophisticated applications assess and analyse clients’ investor profiles and risk preference. Algorithms draw on current market data to optimise the structure of portfolios, allowing them to be continually and automatically rebalanced based on real-time information.

The focus is on user-friendliness and a positive client experience – throughout the investment process. Clients and their advisors can interact via digital communication functions like video chat, so advisors have new options for meeting wide-ranging and complex requirements.

The very role of the advisor will shift: they will start to fulfil the profile of a ‘requirements engineer and client supporter’, with all contact points backed by digital tools.

How RRD is supporting Wealth Management

Future business models must focus on the wealth manager’s technology and digital infrastructure, and is increasingly independent of the advisor. Added value comes via technology which enables a holistic perspective on the customer’s private wealth situation and advice needs. It’s clear that infrastructure and technology-driven capabilities will be fundamental to a wealth manager’s future success.

As a leading provider of outsourced communication and business services, RRD works with many leaders in Wealth Management. Our experience in the sector means our teams have a deep understanding of the on-going compliance and business challenges you face.