Discussing asset and wealth management without bringing up related technologies is nearly impossible. So, it’s not wrong to propose new financial tactics having emerging technologies in mind.
According to a new report titled “Asset & Wealth Management Revolution: Embracing Exponential Transformation,” PwC predicts worldwide Assets under Management (AuM) are going to almost double in size by 2025. From US$84.9 trillion in 2016 to US$111.2 trillion by 2020 and then again to US$145.4 trillion by 2025, showcasing the industry’s rapid growth.
In this blog, you are going to find the basics and suitable tips for seamless processes and financial plan transitions:
What is Asset and Wealth Management?
Asset management seeks to optimize overall returns by leveraging one’s investment. Meanwhile, wealth management has a more holistic focus, as its goal is to maximize and safeguard long-term financial health.
How Technology Drives Value in the Asset and Wealth Management Landscape?
Effective growth management is a top priority for the majority of asset and wealth management companies. Globally, the amount of professionally managed assets has increased, creating new concerns.
For instance, firms are required to abide by legislation like Dodd-Frank and cost-basis reporting in the US and MiFID and AFIM in Europe due to the shifting regulatory landscape. Moreover, asset managers are placing more emphasis on non-core businesses, which calls for a technological change as a result of a decline in traditional fee-based income. Meaning technological disruptions are meant to happen if companies want to remain in the field as some of the competition is adapting. In fact, companies need to expand and modify their operating models to suit unique client needs.
Conventional labor-intensive models and asset management procedures have proven hesitant to incorporate new technologies. For starters, they emphasize sales and expansion more than consumer satisfaction and loyalty.
Due to shifting social and environmental trends, customers now favor ongoing connections with investment firms over transactional ones. The majority of investment firms, nevertheless, have been unable to keep up. They have reacted rather than taken a proactive approach.
Game-Changers in Financial Wealth and Asset Management
In order for you to evolve and unearth some unseen financial insights lately, these are the game-changers that you need to pay attention to:
1. Wealth Management Expertise and Technology
Technologies like robotic process automation (RPA), artificial intelligence (AI), machine learning, and analytics are predicted to be vital in the future of asset management due to rising compliance requirements, rising client demands, and declining profits.
Asset managers are now able to use new distribution technologies to win and keep new clients more effectively. Specifically, the following are facilitated through enterprise-wide adoption of asset management technology, strategic investments in data analytics, and client experience applications:
● Eliminate middlemen
● Streamline value chains
● Reduce operating expenses
● Increase performance
● Provide individualized services based on the requirements of each client
● Turning your attention to the client’s purchasing experience helps you turn transactions into relationships
For example, MiFID II compliance initiatives for data transformation minimize reliance on fragmented data and push businesses toward retrievable, resilient, unified, and elastic solutions. Furthermore, increasing openness through regulatory reporting and examinations also contributes to better investor protection.
2. Logistics and Distribution Economics
Asset managers have long been aware of the economic difference in distribution. In this case, they have typically relied on employing new salesmen to fill this shortfall. But without yielding any notable achievements, this method has driven up costs and driven down earnings.
Asset managers’ strategies need to be based on useful technologies. The following advantages are achievable by utilizing the power of such technology:
● Provide users with a unified view of disparate data: Dashboards and innovative reporting tools aid in the consolidation of data gathered across various organizational levels and geographical locations.
● Transform unprocessed data into valuable information: The management quickly turns unprocessed data gathered at various levels into useful data that is analyzed to help in better decision-making.
● Improve data flow: The organization uses various tools in silos, which results in inconsistent data, bad customer experience, and higher costs. In this situation, technology simplifies this discrepancy and changes the client’s purchasing process.
● Develop operational strategies that fit asset managers: They include assisted captive models, utility models with gain share, and lift and shift.
3. Be Aware of Ever-Changing Customers
Individual and institutional purchasers have both developed to be more sophisticated, knowledgeable, demanding, varied, and time-constrained. The following factors determine how buyers and asset managers need to interact:
● Tailored content: Asset managers attract buyers’ attention by providing them with material that is suited for their needs. In essence, technology is crucial for seeing past the surface and identifying each customer’s true needs.
● Complete solutions: After the initial contact, buyers want in-depth talks and the presentation of specialized solutions from asset managers.
● Hassle-free processes: The perfect, automated, and technology-driven onboarding process is what consumers expect once they acquire the product.
● Committed expertise: A skilled asset manager consults with experts to better understand the needs of purchasers.
When used correctly , technology is very useful in the financial space. Are you looking for the fintech right experts? We have the talent you need! Contact us to find out what finance roles we fill for your company.
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