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Digitization in Wealth Management: Why This Shift is Necessary for the Industry

Author | Assad M. Shaik

Today’s wealth management industry boasts significant growth—but also significant loss for those who have not made the shift to digital platforms. According to Business Wire, the majority of financial advisors are losing business due change in customer preferences and interaction mode. Pandemic, has further pushed the need for digital interaction between an Advisor and Customer. Digitization is the future of the industry and without these digital tools, advisors will suffer.

How Can Wealth Management Firms Support Their Wealth Managers/Advisors?

There are a variety of ways that firms can support their wealth managers/advisors. When it comes to automating and digitizing the day today activities advisors perform, help advisors identify the hidden opportunities within their existing book and provide a platform that enables omni channel experience between an advisor and client. Hence, wealth management firms need to find a solution that can empower the advisors with a single push of button and provides simplified user experience.

Automate and Digitize the Process

Wealth managers spend most of their time crunching data to understand their opportunities. They spend more time talking to IT teams to help them pull data from disparate applications so that they can get the view the latest updates to their book, new opportunities, and activities to be performed. This unproductive and manual process takes up approx. 60% of their time. If the organization can automate and digitize the business process for wealth managers/advisors, this will increase productivity and fuel business growth.

Create Solutions to Discover Hidden Opportunities

Volatile conditions in the market make it difficult today to understand customers and their behaviors. Wealth management, as an industry, needs to have a simple way of identifying clients who need additional investment options, those who have unidentified needs, and even the triggers that drive their need. With an ability to know this information years in advance, people can start nurturing the relationship and build their businesses before competitors jump at the chance.

Employ Data Driven Motivation

Wealth managers have to understand what they are up against. With digitization, firms can inform their advisors of who is performing well, how they are spending their time, and what other pathways would yield greater returns and expanded client books. It is not just for each individual advisor, but for the entire firm.

The best example of this is with an advisor only bringing in one million per year in investment portfolios. However, with digital information and analysis, that same advisor could up-sell, cross-sell, and improve their capabilities to sell up to five million per year. These digital tools are the only way to identify these opportunities and when is the best time to close deals with clients.

Are You Considering Digitization for Your Wealth Management Firm?

Wealth management can become less of a guessing game with the introduction of digitization. Moving towards value-based investments, customers need more robust tools, and so do advisors. To meet the needs of the changing market, digital tools are the only pathway.

To upgrade your advisor experience, consider working with Cognerium today. With a robust digital platform, every book of clients can be optimized tenfold, and investors can finally uncover all the hidden opportunities to increase their potential.