Wealth managers should invest in IT: Capgemini study
Wealth managers should redefine their IT strategy or risk losing clients, suggests Capgemini’s World Wealth Report 2019.
The report, published on July 9th, found that unsatisfactory service experiences were the biggest reason for high-net-worth individuals to switch wealth management firms in 2018. Investing in digitalisation, particularly in AI capabilities, could help managers acquire new clients, Capgemini said.
66.7% of wealth management clients surveyed by Capgemini cited ‘enhanced digital capabilities’ as their primary concern when selecting a wealth management firm, but fewer than 50% are satisfied with the mobile and online platforms of their current choice. The report suggests that incumbent firms should invest in new technologies or risk losing clients to BigTech companies.
“The biggest impact on the wealth management industry will be around the growth of technology, but also regulators trying to keep up with that technology and putting constraints and restrictions around it,” said Steve D’Souza, Head of Private Banking and Wealth Management at Fenergo, a provider of client and regulatory technology for financial services, who is cited in the report.
“The future is a channel-agnostic world, powered by data and technology integration. In five to six years’ time, wealth managers must be able to deliver consistent compliant digital processes globally. This has been the promise for 20 years and now it is becoming a reality.”