Being prepared is great. Whatever scenario you find yourself in, wouldn’t you rather be prepared for it? The trouble is, being prepared is hard, especially for the future. Preparing for the future means putting significant time and thought into understanding not just what you might need but also what you want from that future.
Put that in the context of wealth management and its relationship to technology - like those nightmares I’ve had where I show up to a meeting wearing just my boxers - nobody wants to be left exposed when it’s too late.
What separates the digitally-enabled wealth manager from the purely manual one centers on the flexibility technology provides.
Part of the culture of traditional finance is that what has worked for decades and still generates income for the business, will probably continue to work. If it ain’t broke...
But at Nucoro, we’re always developing digital services that transform the value you can offer to your advisory clients, without losing what drives your business already.
Being more adaptive
Building a more adaptive business model can ultimately mean a number of things. It’s not a prescriptive concept. In the modern world, it’s the responsibility of businesses to prepare their business for this new landscape where hyper-convenience and personalisation are paramount. It’s a tough ask, but it’s not impossible by any stretch.
Using technology to lighten the burdens that eat-up time and resources for your people is a great approach – one that most companies should be undertaking, and on a cyclical basis rather than as a one-off exercise. Predicting the future is impossible, but giving you extra time and resources is a big advantage regardless of how things turn out.
Adopting digital platforms to generate new revenue streams are the kind of steps that can make businesses more scalable for growth in the future, without surrendering the expertise of professionals within the business who have made it the success it is.
I hate this expression but...it’s time to take baby steps!
Streamlining communications, KYC, on-boardings and other currently manual everyday tasks can and must be made into a low-resource formality before a more complete “digitization” can really happen. It sounds so obvious when you read it but these baby steps have great impacts for a business that’s new to next-generation digital enhancement.
Simple improvements build a strong foundation and help to improve the working culture of a corporation. It’s a lot easier to prioritize the customer if you are not worrying about how diseconomies of scale (i.e., more administration and reporting) will affect your future growth plans.
Behaving like a startup and adopting the sort of values that facilitate growth is way more difficult - maybe even unnecessary - compared to the quick application of a market-ready plug-in application. In fact, introducing technology into businesses can bring cultural changes naturally, as well as offering the firm something even more valuable: longevity.
“Wealth managers are waking up to the importance of digitising their business in order to remain competitive...Client demands are now changing, and a digitised service is expected rather than “nice to have.”
Kenn Taylor, Head of Wealth, Alpha FMC, “Wealth managers underestimating investment needed for digital change”, Consultancy.UK (Aug 2018)
Let’s be honest, innovation should never really have a finish line. While plugging gaps can keep something afloat, eventually, some tech needs to be put out to pasture to allow for long-term sustainable growth and sustained competitiveness. That’s why it’s all about taking the first steps - it makes the leaps so much easier in the future.
Instant enhancement, future preparedness
Over the next 3-5 years, we’ll see companies priortize digitisation projects and increase partnerships with solution providers who can get things done faster and cheaper.
Adding technical enhancements to existing services is a means to an end - a foundation to benefit your customers right now and prepare you for future enhancements to your digital capabilities.
Nobody is arguing that traditional services are not aware of what needs to be done to survive the shifting transfer of wealth to the hands of a more tech-savvy audience.
I think the challenge lies in this generational aspiration amongst younger groups who are experiencing a dichotomy - wanting to retire earlier, while at the same time struggling to build-up wealth of their own. In essence, traditional services have just not found a cost-effective way of serving this new client base in that respect.
Lucky for you, there are options available to financial services firms that can help you be ready for this new generation of potential clients who, if you’re able to engage with them on their level, are going to reward you with their trust for many years to come.