One of the primary reasons for the extremely fast use and adaptation of technology in the wealth
management industry is the addition of a whole new set of millennial customers who are young and
tech-savvy.
With the increasing use of mobile internet, a young tech savvy person is used to shopping everything
online, booking cabs with the click of a button, checking out the latest news and updates. With the
advent of lockdown forced by the spread of the Covid virus, the new words in peoples dictionary are
zoom meetings, webinars, online statement etc. We will look at some of the important aspects of
Wealth Management from advisors points of view who are embracing technology like never before.
Client Onboarding
A rising number of firms are driving their business teams to enabling their channel partners / sales team
as well as their websites/apps to onboard a client in a completely digital way. This completely does away
with the advisor having to meet the client physically and filling in a bunch of application forms. The
requirement of In-Person Verification is also now done through capturing the client photo and video
through a digital medium. The person completes the entire form online and attaches a digital signature
to it. This way a financial advisor operating out of Dehradun can complete the KYC of a marketing
professional living in Mumbai
Process Automation in the Advisory services
A lot of processes such accessing the risk profile of the client, suggesting to him the most suitable asset
allocation and finally recommending the investment products are now taken care of by smart algorithms
which take in and use multiple factors such as the client profile, the latest market data and churn out
the end result in a matter of minutes. This reduces the human bias that can creep in based on the
advisors own experience
Intelligent alerts and notifications
Today, the advisor is having a whole lot of data with him. With the use of AI and ML, he is able to get
intelligent alert which help him to manage his clients better. A simple example would be of a Corporate
Deposit of his client which is maturing in the coming fortnight. An AI driven system could send in an alert
to the advisor who in turn can advise the client the best way to deploy the maturity amount. Systems
could be built around nudging customers to start an extra SIP in case the goal accumulation is behind
schedule. Systems could also check in real time how much the customer is spending and tell him if he is
going over the monthly budget
Reporting and Client Servicing
Technology is fulfilling an important need here. The advisor is able to not only analyze the entire client
portfolio consisting of a whole lot of products, but is also able to schedule it automatically to be send to
the client. A lot of customer queries can be handled with the help of an automated chat bot.
The advisors clearly see the benefits in the form:
- Increase in time spend coaching the client rather than filling forms (This helps to overcome the client’s behavioral biases)
- Can handle more clients (can work anytime and anywhere as everything is digital)
- Offer more products and services to the client (more importantly offer the most suitable product to him at the right time)
- Cost reduction as processes as paperless and quick
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