As we continue to discuss how you could build out a future-ready wealth platform and transition to a hybrid advice model, I wanted to draw your attention today to our CTIO Paul Daugherty’s Tech Vision 2018 report to highlight some emerging technology trends. ”This isn’t about a destination, it’s about a journey,” Daugherty says about these new trends, and we agree.
Our “Wealth in the Digital Age” research predicts that hybrid is the beginning of the new wave of advice. As firms build out their future wealth platform, this journey will include partnering with wealthtechs; investing in a robust data pipeline; executing a digital decoupling; and equipping your firm’s operating model and culture with ongoing innovation.
Beyond that, the top five IT trends identified in our Technology Vision 2018 report will shape the financial industry as a whole. So, let’s take a closer look at each of those trends to see how they will impact wealth management firms and how they could help accelerate your transition and build your competitive advantage:
1. Citizen AI
For wealth management firms looking to offer hybrid advice, ‘raising a responsible AI,’—one that benefits the client’s business and society at large—will likely be crucial. According to our Wealth in the Digital Age survey, four out of five executives agree that within the next two years, artificial intelligence (AI) will work next to humans in their organizations. A growing majority (72 percent) of executives also report efforts to gain customer trust and confidence by being transparent in their AI-based decisions and actions.
2. Extended Reality
How does extended reality impact wealth management firms? Virtual and augmented technologies are removing the distance to people, information and experiences. In wealth management, extended reality (XR) offers an opportunity to create better engagement with clients. Leaders in the industry are already using XR for workforce training, day-to-day productivity and immersive customer experiences. Firms that are winning are the ones redesigning their business without the limiting factor of distance.
3. Data Veracity
In order to deliver the personalized advice and service experience that clients are increasingly demanding, wealth management firms need a robust data pipeline to turn insights into action. Our Tech Vision survey found while 79 percent of executives agree that organizations are basing their most critical systems and strategies on data, many have not invested in the capabilities to verify the truth within it. Confidence in the integrity of a wealth management firm’s data and insights can be critical to business. While creating your future wealth platform, consider investing in data integrity and veracity as well.
4. Frictionless Business
Staying competitive can depend on strong partnerships with wealthtech providers and creating a powerful digital ecosystem. Wealth management firms need to re-architect themselves in order to have a seamless relationship with these digitally savvy new entrants to the market. In order to get the most of these partnerships, wealth organizations should consider an internal transformation of their legacy systems and adopt new technologies to build a smart ecosystem.
5. Internet of Thinking
AI, extended reality and connected devices are creating a new level of digital sophistication to the physical world. Leveraging these revolutionary new systems for future wealth platforms will require firms to embed intelligence across their entire organization. Extended infrastructures—from the cloud to edge and everywhere in between—will become the backbone of the Internet of Thinking.
These five trends can help drive innovation, speed and scale as firms look to create the wealth platform of the future, while continuing to provide personalized value and remain competitive in a rapidly changing industry.
To learn more, download our full report, “Technology Vision 2018.”
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