Are wealth management services providing scalable CX to their rich clients?

A 2023 survey could have unearthed a technology gap that impacted how customer experience (CX) and hyper-personalization could have been delivered

Based on an online Feb/Mar 2023 survey of 200 wealth management professionals in six markets (the UK, Germany, Switzerland, Singapore, Hong Kong and Japan) on the challenges and opportunities faced by private banks and wealth managers, a wealth-tech firm providing software services to financial institutions has disclosed six trends among the Singapore and Hong Kong respondents’ purview.

First, about half of Singapore respondents (59%) faced difficulties in finding the information they needed for clients.

Second, 62% of Singapore respondents affirmed prompts that too many systems were needed to complete a task.

Third, also among Singapore respondents, automated compliance reporting (77%), enhanced data visualization (76%) and automated portfolio monitoring (76%) were the top three functionalities offering a major improvement for wealth management professionals in the country.

Fourth, among Hong Kong  respondents (49%), there was a trend that their systems were not designed according to their needs.

Fifth, 78% of Hong Kong respondents cited difficulties in scaling as a “moderate to very strong barrier” to offering more personalized advisory services to their clients.

Lastly, 56% of Hong Kong respondents were using technological tools and platforms with clients.

Key recommendations

According to the survey report by Avaloq, which disclosed the above data, there was a “gap in the suitability of current front and investment office tools, and (a) need for tailored, efficient solutions” for respondents of the survey.

“Having achieved quick wins in recent years, (such) firms now face an inflection point, demanding a more profound enterprise reinvention journey. Future success requires adopting technology-driven and data-enabled business models that place the client at the heart of the value proposition in wealth management and private banking. Harnessing both technology and human ingenuity becomes a key competitive advantage, putting cost-effective personalized service delivery at the core,” the report concluded.

On the flip side of the wealth management sectors globally is a steep rise in fines for failure to comply with anti-money laundering regulations, according to a LexisNexis report.