FinTech

Blog Articles

Over the next decade, between 30 and 68 trillion dollars will be transferred by families to their children. In the UK alone, estimates are $15.4 million over the next decade, according to a Russell-Cooke study. Succession planning by wealthy families and family offices is a hot topic in those rarified circles. But for many affluent families, wealth planning has not been priority. According to a report by Russell Investments, only 26% of families have a full strategy on wealth transfer, and once the transfer occurs, 90% of the heirs change advisors. In some countries, such as Switzerland, strict laws prohibiting advisors from contacting the heirs of a deceased client can eliminate communication. Sadly, 70% of families lose control of their assets after the transfer.

It has been a few years since digital transformation appeared on the priority list of the financial industry executives. While the evolutionary process of tapping into the latest technology is continuous, the pandemic has accelerated it dramatically. Even the most conservative branches, such as wealth management, now contemplates transforming their businesses into more digitalised operations. Some financial advisors embrace innovation wholeheartedly, reaping all the benefits and facing all the risks of early adoption, while others take a more cautious strategy. OutRank® advocates an incremental, forecast-driven approach when building digital journeys for your customers or financial planners, regardless of where your competitors are in their digital transformation efforts. At Kidbrooke®, we provide Forecast, the module of OutRank®, which delivers predictive forecasting functionality applicable to various financial planning use cases and digital journey elements.

Since the introduction of reliable self-service channels in the wealth management sector, some asset managers have been contemplating providing digital investment guidance and direct-to-investor models to obtain a low-cost distribution channel. This strategy has its merits in driving down the average cost per acquisition, but the key challenge is to nurture and retain long-term customers. Could digital channels match the teams of physical advisors in terms of quality ?

Wealth managers often build customer journey islands when introducing a new service or feature. Opting instead for use case-agnostic technology that supports all components of the organization’s strategic roadmap can grant a financial institution the necessary flexibility to achieve a strategic freedom to innovate.