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Adrian Hextall
Head of Technology and Transformation Services, Evelyn Partners
The demand for comprehensive coverage of banking and wealth management is indeed increasing. However, it's not necessarily about expecting a single organisation to handle all aspects. It's more about seamlessly presenting information from multiple financial institutions in one place.
How have client behaviors changed in the wealth management sector over the past few years, and how do you anticipate this evolution in the next 2 to 3 years?
Indeed, client behaviours have undergone a significant transformation. With the advent of smartphones, everyone carries a portable computer with them every day. The expectation of instant access to information has become the norm. Clients no longer want to go through the traditional process of setting up meetings or phone calls. They want to be able to check their investments and make decisions on-the-go. Mobile apps have played a crucial role in meeting these expectations. For example, our own best invest application allows clients to access their investment status anytime, anywhere. In the coming years, I believe this trend will continue, and clients will increasingly demand digital access and convenience in their wealth management experiences.
A Capco report states that 49% of wealth clients prefer a single financial institution to serve most of their needs. However, not all wealth management firms have the capabilities to meet these diverse demands. Are you witnessing a growing demand for integrated banking and wealth management?
The demand for comprehensive coverage of banking and wealth management is indeed increasing. However, it's not necessarily about expecting a single organisation to handle all aspects. It's more about seamlessly presenting information from multiple financial institutions in one place. This can be achieved through open banking APIs that allow us to pull information from various sources and present it under a unified user interface. The key is to provide clients with the convenience of having everything in one place, even if it involves multiple organisations. By focusing on integration and presenting a holistic view of clients' financial information, organisations can capitalise on this opportunity to meet clients' expectations.
Moving on to the competitive threat from fintech companies, how do you perceive their impact on the wealth management industry?
Fintech companies have definitely gained a solid foothold, particularly among younger audiences. Their innovative solutions that combine traditionally siloed banking and wealth offerings have appealed to the tech-savvy generation. However, it's important to note that traditional wealth management firms still have a role to play. Many current wealth management firms may not be ready for fully integrated solutions. I believe there is a parallel market where fintech companies cater to younger audiences, while established organisations serve the needs of experienced investors. To combat the threat, traditional firms need to adopt innovative technologies and explore partnerships or collaborations with fintech companies. Embracing digital transformation and evolving their digital offerings will be crucial in staying relevant and competitive.
You mentioned that data is the "new liquid gold" for wealth managers. How can utilising data enable wealth managers to create a more digital hyper-personalisation offering?
By leveraging vast amounts of data, wealth managers can target their clients based on their specific needs and wants. The age-old desire to benchmark clients against each other has always been there, but we haven't been doing it well enough. We have an abundance of data at our disposal, but we need to dig deeper and extract valuable insights. This will enable us to launch targeted marketing campaigns based on findings from data sets, and that's incredibly powerful.
I believe there is a parallel market where fintech companies cater to younger audiences, while established organisations serve the needs of experienced investors.
I don't think knowledge, experience, and intuition can ever be replaced. A decision-maker with the ability to change their mind quickly is crucial.
How does consolidating data in the cloud help wealth managers gain insights and have meaningful conversations with their clients?
Well, on the data side, we are moving towards the use of modern cloud storage. We're planning a migration to consolidate data sets in the cloud, which were previously scattered across different SQL databases. Having all the data in one place allows us to gain insights about our clients and have meaningful conversations with them. It eliminates the need to search through multiple databases and enables us to make well-informed decisions based on a comprehensive view of our clients' data. Consolidating data in the cloud streamlines our processes and enhances our ability to provide personalised services to clients.
While digital platforms and solutions are often discussed, do you believe that a hybrid approach, combining digital tools and human expertise, is necessary for true digital transformation?
I don't think knowledge, experience, and intuition can ever be replaced. A decision-maker with the ability to change their mind quickly is crucial. AI-driven solutions can never match the flexibility and gut feeling of human involvement. AI approaches problems logically, while humans can act on instinct and take calculated risks. True digital transformation requires striking the right balance between digital tools and human expertise. The digital tools serve as a resource material, helping wealth managers understand market trends, historical performance, and future expectations. They eliminate the need for wealth managers to search through countless pages of data, enabling them to make well-informed decisions efficiently.
About Evelyn Partners
Evelyn Partners is a group of trusted financial advisors delivering tailored solutions. Expertise in investment management, wealth planning, and financial consulting. Client-centric approach, personalised services aligned with unique goals. Dedicated to safeguarding and growing clients' wealth.
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