Investing in digital tools and applications can help wealth management firms increase efficiencies and improve profitability for clients and advisors.
FREMONT, CA: The process of digital transformation involves using technology to create or modify business processes to boost customer satisfaction. Many financial institutions are now considering using third-party companies to build seamless integrations between their existing and fintech platforms to develop end-to-end customer platforms.
Wealth management solutions allow companies the following business optimizations.
Client portal: The investment process is becoming increasingly engaging and participative for clients. Investments in client-facing platforms are necessary to increase transparency and customer engagement in wealth management. A client portal should allow clients to view their financial goals and savings plans, contact their advisors, connect with support and investment product specialists, and adjust scenarios, such as retirement age, income levels, spending habits, and significant expenses. These systems contribute to a collaborative and interactive experience for clients' financial wellness.
Back-end systems: Wealth management tools must support advisor strategies as the financial advisor workflow becomes increasingly digitized and automated. The firm's front and back offices will benefit from improving back-end processes, as will its clients. The firm's competitive advantage can be enhanced by implementing a smooth and reliable end-to-end workflow that retains advisor talent, attracts prospective hires, and enhances efficiency.
Automation: Several industries, including banking and financial services, have taken steps to automate manual processes. Reducing, minimizing, or eliminating manual intervention in wealth management departments and firms is possible by enabling straight-through processing (STP). Firms can decrease transfer processing times, mitigate and avoid all risks associated with manual processing, including human error, and reduce operating costs by automating back-end account transfer processes.
Cloud-based platforms: The cloud offers greater scalability and flexibility for wealth management firms than on-premise hosting, which is typically more time-consuming. Enhanced trading capability and support for sophisticated order types and products, such as complex options and real-time allocations, are two benefits to businesses. Cloud migration also allows for future scalability, increased security/system resilience, improved regulatory controls, minimized errors and losses, and enhanced ease of compliance with new regulations.
