Key Trends in Wealth Management Q2 - 2023
As we tread midway to 2023 and discover what it may have in store for wealth management organizations, you can expect to see this focus area remain with most wealth managers giving their channels and CX solutions a much-needed overhaul. Consumer expectations are going to keep getting increasingly digital oriented.
Managing Orphans via Your Wealth Planning Software to Improve Compliance
In the advisory world an insurance company holds a client’s assets on their books while an Independent Financial Advisor (IFA) supports the client with financial advice. From a regulatory perspective, the insurance company follows its own regulations, like Solvency 2, while the IFA follows regulations targeting financial advice. For a variety of reasons, sometimes a client gets separated from an IFA, hence losing access to an advisor for help with their financial planning. However, the client still has assets on the insurance company's balance sheet. When this happens, the client is referred to as an ‘orphan’.
Outside In: Iterate to Innovate
New technology is often implemented by large companies to solve specific problems. Once the initial purpose has been achieved, the technology becomes part of the business as usual or “BAU” infrastructure. But instead of relegating a new functionality to the “new normal” category, it is useful to consider it as a catalyst for change – both in external, customer facing projects and in internal, IT development planning. Skandia, Sweden’s largest insurance company, implemented OutRank to offer customers a superior tool to better understand their pensions and investments. Working together with the Kidbrooke team, the Skandia executives saw the positive impact that a user-friendly customer interface had on sales as well as customer retention.
Digital Wealth Propositions: Achieving Strategic Flexibility
Once your team decides on building a new digital service or feature, it is always a good idea to avoid chasing short-term gains and think strategically. It is likely that after a successful pilot, you would like to tailor the functionality to suit customers' feedback. Furthermore, after a while, you might wish to expand your business to a different country and ensure that its digital core is compatible with local regulations, tax regimes and account structures on an ongoing basis. Finally, as you navigate your roadmap, you might want to complement your services with new use cases and expand your customer base. All these strategies require tremendous flexibility of the technology driving your digital and hybrid financial journeys. Today we examine the key technological factors ensuring the flexibility of digital financial services.