To excel in today’s fast-paced financial world, wealth managers and financial institutions must cut down on timely – and costly – administrative processes and focus on what they do best: providing sound advice to their clients. In order to reach that point, we need to look back on the way the advisor-customer relationship has changed in recent years.
Over the last 20 years, we’ve observed completely different levels of client engagement within the investment process. Back in 2000, it was simple: wealth clients invested in the next hot stock or internet phenomenon, putting little thought into portfolio diversification.
By 2008, however, things had taken a turn. Triggered by the global recession, the industry started taking notice of challenges surrounding issuer concentration in investment portfolios – on top of new, previously unseen administrative burdens. Their approach to offering investment advice had to change.
“Today’s client expects a new kind of wealth management experience. And that means a focus on new business outcomes – offerings designed from the client’s perspective that deliver more informed, more personalized, more transparent, and more collaborative service more quickly, efficiently and effectively.”
In essence, to achieve success in the new era, wealth managers need to be empowered in order to provide highly personalized advice and bespoke services. And they need to do so while cutting down on non-value adding tasks such as administration.