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Wealth managers need to embrace digital

F.Y. Teng | May 5, 2014
CIO-Asia talks to Accenture’s Beat Monnerat, senior managing director responsible for the client service group for financial services in ASEAN as well as for analytics for financial services globally, about how digital solutions help private wealth managers.

Beat Monnerat

Beat Monnerat, Accenture’s senior managing director 

CIO-Asia talks to Accenture’s Beat Monnerat, senior managing director responsible for the client service group for financial services in ASEAN as well as for analytics for financial services globally, about how digital solutions help private wealth managers.

How can digital help wealth managers?

In Asia, digital solutions could be a way of capturing the Asian-growth story because it can enable wealth management firms to focus less on who the relationship manager is and what that RM knows, and focus more on ensuring a strong client relationship by increasing the number of touch points with the customer and by offering bespoke advice.

Here’s how it works. Wealth managers can use analytics to scrutinse client’s investment preferences, risk tolerance and savings goals, which have been specified in writing, on telephone calls and during video conference calls, that all have been digitally logged.  The wealth management firm can also track and analyze a wider array of investment options to select new offerings to send to specific clients who match the risk appetite for each product.

Once the data is mined RMs can provide customized advice to their clients across all channels, from texting to ipad-friendly versions via the internet.  This is all available these days because of digital innovation.

I think we all understand that digital solutions help with distribution but can they also help wealth management firms manage productivity?

Absolutely. By leveraging analytics, firms can monitor the take up of the ideas generated as well as the relationship managers’ return.

Wealth management firms can use digital solutions to help distinguishes top-tier advisors in order to make sound decisions on improving productivity. They need to identify the personality traits of high performers, as well as the techniques they use to sell.  Once equipped with this knowledge, firms are better positioned to know who to recruit, how to incentivize and also how to structure products and offer other value-added services.  For more on this see: http://www.accenture.com/Microsites/insights/awams/Documents/pdf/Accenture-Shifting-the-Curve.pdf

Are digitally tuned-in clients really the target market of wealth managers?

Have you ever bought a book, music or clothes on-line? How about reserved a flight or hotel booking? Do you do your basic banking online? You probably have. Online consumption is unquestionably on the rise across all facets of our lives.

Digitally empowered clients—Accenture calls them Generation Digital, or Generation D (See: www.accenture.com/GenD-Insights ) — are a cross-generational group that wealth managers need to embrace. Generation D clients believe that their financial future is largely in their own hands. They use technology to seek out engaging, educational experiences across multiple channels, 24/7. And our Generation D research found them to be less trusting and often more risk averse than those without such capabilities.  Understanding these clients is a first step to serving them.

 

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