The wealth management landscape is transforming, driven by the modern investor. An investor who insists upon a new experience. To give clients what they demand, wealth management companies need to develop a platform where humans and technology work together seamlessly to truly deliver hybrid advice—a combination of humans and digital capabilities. According to our research, clients prefer this model, one that allows access to digital platforms with an advisor's expertise in handling more nuanced or complex investing scenarios. While many firms have the human element covered, innovation in digital today is requiring the power of many: an ecosystem of wealthtech partners to help wealth management firms clinch the innovation element via technology.
Our experience shows the wealth platform of the future will be defined by investment in four areas
1. Wealthtech providers. Wealth management companies need to transform the client experience in a digitally scalable way. To differentiate a successful hybrid proposition, innovation driven from the wealthtech ecosystem is an essential part of the mix. More than one-third of firms are working with double (or more) partners than they were just one year ago.1
2. Applied intelligence. Using analytics, machine learning and artificial intelligence in a potent mix, companies could unlock the trapped value of their data and drive new growth. Firms that are serious about their competitive edge are already moving to this new growth, recognizing the potential reflected in recent studies. Capital market firms’ AI spending from 2016 through 2021 is expected to rise by 50 percent, reaching $57.6B by 2021.2
3. Lightweight architectures. Monolithic technology cores—clearing platforms or custodian partners—are still the foundation of most wealth architectures. But what once spelled power now imposes constraint. Wealth firms are executing a “digital decoupling” to provide the agility they need. Riding a wave initiated in digital banking, they are abstracting the core back office, employing lightweight architectures driven by application programming interfaces and microservices.
4. Ongoing innovation. As firms continue to compete in a landscape that demands new thinking, they must contemplate the operating model, workforce and delivery engine that will power future innovation. In a new way of operating, technology, data and analytics teams must better partner with the business.
Today’s investor desires a holistic financial engagement
By investing in these four areas, wealth managers could reengineer to create the differentiated advice experience clients demand. Gone are the days where stability and operational efficiency alone could drive technology investment. The customer experience clients now demand requires a new wealth platform—one that emphasize agile innovation.
Accenture has developed a concept to declutter the wealthtech landscape along with specific functions to identify platforms driving innovation and bring value through various partnership models. Our deep relationships with key wealthtech providers could help you build the foundations to lightweight architectures and ongoing innovation. Are you ready to accelerate your digital transformation and create a seamless wealth platform?
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1 Intelligent Enterprise Unleashed