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Produced by:
Paul Noone
Program Manager / Head of Change Consultant for M&G
Wealth management works with highly valuable and sensitive information, keeping up to date with the latest security technology is critical.
What is behind the recent increase in software spend within wealth management?
The wealth management industry is bound by monolithic backend systems. As the rest of the world has embraced automation and other new technologies, wealth management has taken some time to catch up. As a result, there is currently a noticeable increase in software spend for the industry. At the forefront of this spend increase is information security. Wealth management works with highly valuable and sensitive information, keeping up to date with the latest security technology is critical. Alongside this, there has also been a drive for more integrated software solutions that help drive efficiencies across the businesses. This then creates a circle back to information security because any integrated system needs to offer the same level of security as the business’ own systems!
How have client expectations changed in wealth management over recent years?
As technology continues to develop outside of wealth management, it creates new expectations that wealth management companies are subject to whether they like it or not. The rise of digital research tools and self-serve online shops means it is easier than ever for people to find information and make decisions themselves. People now expect the same level of experience when it comes to their wealth management. Clients now want direct, close to instant access to information about their funds and to be able access new rates without always needing to speak with somebody. This is why we are seeing a rise in the number of client portals offered from wealth management, as they seek to meet their client’s expectations and therefore retain them as customers. Moving forward we will also see a rise in the number of direct-to-consumer propositions within wealth management, driven by software and light AI, offering solutions for clients who don’t feel they need the traditional level of advice a wealth management firm has to offer.
Moving forward we will also see a rise in the number of direct-to-consumer propositions within wealth management.
Innovators and disruptors within wealth management have a real opportunity to set themselves apart.
How are new entries to the wealth management market standing out?
The value of data and using it to find new insights has been understood and in use for a while now. The Wealth management sector has struggled to reap the benefits of data analysis because the outdated systems they have simply can’t provide the data in a clean, useful way. This is slowly changing though and there is an appetite for rich data analysis within larger wealth management firms, it’s just taking them a while to get there. Whilst the larger firms play catch up with data, innovators and disruptors within wealth management have a real opportunity to set themselves apart. Having access to clean data and the right AI allows them to bring together a client’s finances in one place and offer them a level of visibility that the larger firms just can't match right now. When clients have that higher level of visibility, they become more confident in their investment decisions and therefore trust their wealth management firm more.
About M&G
As a leading financial services firm, M&G offers a comprehensive suite, from investment management to life insurance. Significantly, in an era of rapid digital advancement, M&G exemplifies a commitment to integrating technology, ensuring quicker time-to-market and fostering digital innovation. Embracing modern demands, the firm also champions responsible investing, underscoring the importance of environmental, social, and governance (ESG) factors in today's transformative financial domain.
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Assured Thought is a quality assurance and software testing company for financial services firms in the UK, Europe and beyond.
With the right QA testing strategy, access to the right tools and resources, and the support of high performance specialists, you can accelerate the growth of your business and reap the rewards in a complex world.
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