Accenture analysis shows that 80 percent of wealth managers’ time is spent on non-revenue-producing activities. Eighty percent. That is the equivalent of working four out of five days on activities that do not increase firm revenues.
What is the solution? Digital technologies. There is no reason in today’s world of Artificial Intelligence (AI) and automation that advisors, more often than not, cannot be generating revenue. Activities like compliance and onboarding could be streamlined with digital, freeing advisors up to do what they do best—build and deepen client relationships.
I recently contributed to an Accenture point of view highlighting how digital technologies could help wealth management firms better meet client expectations. “The Human Dividend” to address critical topics such as:
- What clients mean when they say they want a “lifestyle partner” for wealth management
- The changing perception of the value of traditional wealth management advice
- Why tapping into “data gold” is essential to creating a value proposition that works for the modern investor
While I won’t detail the paper here, I will share the three recommendations for wealth management firms to help keep them competitive for the future:
Invest in hybrid wealth management. To remain viable moving forward, firms must marry human and artificial intelligence (for a detailed paper on what investors told us on this topic, see here).
Become your client’s lifestyle partner. The future wealth manager has a solution to address the majority of clients’ needs, life stage and privacy preference through one platform that is connected to myriad ecosystems.
Use Big Data to create value. Currently, only the top 20 percent of each client segment is usually receiving proactive service, while the remainder must call their client advisors (reactively) to receive service. By making full use of existing data, wealth managers can drive new forms of value.
Email me, Kendra Thompson, or my fellow point of view contributors—Karime Abdel-Hay, Frederic Brunier and Anders Christensen—if you would like to discuss how to better incorporate digital value into your wealth management practice.