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Inadequate technology causing wealth management firms to miss business opportunities


New research by Compeer shows wealth management firms are being held back by a lack of adequate technology.

A study, published by the business performance benchmarking firm which surveyed wealth management firms collectively managing GBP150 billion, showed that although 86 per cent of respondents believe technology can provide firms with a competitive advantage, nearly 40 per cent thought their current IT setup was a barrier to scalability.
From an IT perspective, the most important challenge for the majority of respondents was digitalisation with nearly a third (31 per cent) of respondents listing it as the most important challenge their firm faces. Amplifying this, 43 per cent of respondents could recall an instance where the lack of a system which would help them to better understand their clients caused them to miss out on a business opportunity. Only a quarter (25 per cent) of respondents are currently using a Customer Relationship Management (CRM) system, although more are considering going down this path.
James Brown at Compeer says: “Investing in key technology is vital to put wealth managers ahead of their competitors. It enables wealth managers to free up time to actually service their clients, reducing the amount of missed opportunities. This need becomes painfully clear when you consider that two out of five respondents could name a concrete example of missing out on an opportunity because of their current IT system.”
Sixty three per cent of those surveyed envisage their assets under management growing by over 50 per cent in the next five years and no respondents expect a decrease in technology spend. In fact, 75 per cent of those asked said they had a good awareness of current systems available that would help them know their clients better. So, the potential exists to sharply reduce those missed opportunities in the near future.

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