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How to Select the Right Technology Partner?
We are all cognizant of the magnitude the current intergenerational wealth transfer will have on the wealth industry. With over $84 trillion1 set to be inherited, in the next 20 years, the new generation(s) of investors are expected to have an abundance of capital, with the ever-present financial knowledge shortfalls, now coupled with “advice” on new and often unregulated investments appearing from multiple channels giving views on what is an appropriate investment.
This juxtaposition of circumstance, combined with an era of technological convenience, will inevitably put immense demand on the service, and, subsequently, the technology demands of wealth managers globally.
1 UBS Investor Watch Report 19th October 2022
As a result, wealth managers are adapting to stay ahead of the competition as these tectonic plates shift and steadily change the make-up of the entire industry… But what should one consider when building out their technology foundations for the future?
But what should one consider when building out their technology foundations for the future?
With investment management to date being a predominantly traditional industry in the way it manages end clients and their investments, most firms are understandably still supported by legacy technology. Sending emails (or even faxes) to trade, managing operations through Excel and mega-macros, and communicating with clients via detailed, static reports on a periodic basis are still widespread in operating models today.
Whilst this may be cost-efficient, even cost-necessary, in many situations, the consequential operational risk and detriment to the client experience will fall short of the next generation of demand. With “this great wealth transfer”, firms are re-evaluating their technology infrastructure to cater for increased investor engagement through a multitude of digital and physical channels and to maintain and/or grow their market share.
Whilst this is a familiar talking point for all, the next step of assessing the myriad of options in the market can be overwhelming, to say the least; below, we have shared, from our experience, some important points in this transformation journey and the key questions we encourage our clients to ask to evaluate such technology that is key to thriving in this new market.
With over $84 trillion1 set to be inherited, in the next 20 years, the new generation(s) of investors are expected to have an abundance of capital, with the ever-present financial knowledge shortfalls, now coupled with “advice” on new and often unregulated investments appearing from multiple channels giving views on what is an appropriate investment.
