Digital technology is contributing to a major shift in the role of financial advisors in client interactions, as well as in their efficiencies. Our 60-page report analyzes the status, trends and drivers in the digitalization of wealth advisor functions such as onboarding, compliance, client profiling, financial planning, advisor-client interfaces and client meeting preparation, and explores the threats and opportunities for wealth management firms in supporting their advisors through digital means.
In addition, the report presents case studies to show digitalization initiatives working out in practice and gives essential recommendations for wealth managers on how to take advantage of the technological opportunities to improve advisor efficiency and client satisfaction.
For this comprehensive research we conducted 15 granular, qualitative interviews with relevant technology providers and executives of wealth management firms, and built on rich insights provided through our recent surveys and reports on topics relevant to the digitalization of wealth advisor functions. These thoroughly researched data allowed our analysts to construct an in-depth multi-dimensional picture of the critical challenges for wealth management institutions in the digitalization of their financial advisors, and map out the direction and speed of travel in relation to innovation in the next three years.
Wealth managers, banks, IT vendors and consultants will find answers to the following questions:
- What is the state of digital deployment of wealth advisors, how will the advisor role change in the digital future, how will the client-advisor relationship be reinvented and how can critical efficiency gains from technology become reality?
- What are the regulations where compliance translates into improved client experience (and why)?
- What are the threats, legal and reputational, in digital failures in relation to regulation?
- How does client self-service play out in a new ‘contract’ with wealth clients?
- How can advisors foster a collaborative approach with clients through digital tools?
- How does the concept of the Client Journey play out in a digitally enhanced advisor-client relationship?
- What does successful digital communication with clients look like?
- How to implement digitally-enabled planning abilities for genuinely life-long financial planning?
- What are the expectations of the use of artificial intelligence and the long-term impact of AI?
- How do technology companies, whether banking system providers or niche players, integrate with one another?
- What do technology companies think about institutions’ legacy system challenges?
- How to bring advisors on board with major digitalization programs?
- Status quo and trends of the digitalization of the wealth advisor
- Drivers for the digitalization of the wealth advisor
- The significance of regulation for advisor digitalization
- Achieving more client-advisor interaction through digitalization
- The impact of digitalization on the client journey
- Choosing the right media, contact and communication channels and digital client interfaces
- Advanced financial planning through a combination of man + machine and the role of AI
- The view of relationship managers and the message to clients
- Seven case studies showcasing technology offerings for the digitalization of the client-advisor relationship
- Opportunities and threats of advisor digitalization and how private banks and wealth managers should act
The report includes more than 15 visuals including graphs, screenshots and charts and comes with a Key Insights Deck: an easy-to-understand 10-slide presentation that summarizes key findings for quick sharing.
1.0 Executive Summary
2.2 Research Method
2.3 Selection of Technology Providers
2.4 Interview Professional Roles
3.0 Framing the Digitalization Debate With Numbers
3.2 Digitalization, Current Deployment
3.3 How Do Advisors Spend Their Time?
3.4 Prospect to Client Conversion Rates
3.5 How Many Clients Per Advisor?
4.0 The Significance of Regulation As Driver for Digitalization
4.1 Regulation is a Driver, Not a Hindrance to Digitalization
4.2 The Key Regulations; Mifid Ii And the Department of Labor Fiduciary Rule
4.3 Current New Regs: a Cloud With a Silver Lining
4.4 Digital Technologies in Demand for Compliance
4.5 Low Load Compliance, Non-Compliance And Reputational Damage
5.0 More Client-Advisor Interaction - the Promise of Digitalization
5.1 Squaring the Circle
5.2 Direct Assistance to the Advisor
5.3 Client Self-Service
5.4 the Shareable Interface, the Heart of the Digitally Assisted Relationship
6.0 Digitalization And Client Journeys
6.1 Client Journeys Are Not All About Time
6.2 Robo-Advisors from a Technology Provider Perspective
7.0 Media, Contact And Communication Channels
7.1 ‘Contact Via Tech is the New Black’
7.2 Conversational User Interfaces
7.3 Voice Enabled Capabilities And Natural Language Generation
7.5 Who Wants What?
7.4 Keep Calm And Carry On - Omni-Channel And Compliance
8.0 Financial Planning
8.1 The Relevance of Financial Planning
8.2 The Growing Importance of Financial Planning
8.3 The Problem With Financial Planning
8.4 Part Man - Part Machine
8.5 Holistic And Goal-Based Planning Can’T Be Digitalized Completely
8.6 For Planning, a Picture of Greater Flexibility Through Digitalization is Emerging
9.0 The Reach of Digitization And the Place of Artificial Intelligence
9.1 Handling Data is a Major Beneficiary of Digital Transformation
9.2 Digitization Behind the Scenes
9.3 Cognitive Ability Through Artificial Intelligence
10.0 Mission Digital: the Future Outlook for Private Banks And Wealth Managers
10.1 The Dangers in the Digitalization Revolution
10.2 Digitalization Threats from Elsewhere in Banking And Finance
10.3 Tech Integration from a Wealth Management Point of View
10.4 Digitalization And Legacy Systems
11.0 Digitalization: the View of Relationship Managers And the Message to Clients
11.1 Individual Advisors’ Attitudes Not As Pivotal As Expected
11.2 Digitalization Narrative for Clients And the Wealth Management Market
12.0 Conclusion And Recommendations