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HNWIs want personalised services enhanced by technology, says new report


Wealth managers believe that delivering highly personalised services is essential to achieving a competitive differentiation but a third of are unable to personalise service to the degree they wish, according to a new report – ‘The Next-Generation Wealth Managers: Advancing Services and Personalization with Technology’ from Forbes Insights and Temenos. 

Nearly two thirds of wealth managers (64 per cent) are segmenting their clients and creating detailed and distinct profiles that enable personalisation in line with the expectations of HNWIs. Yet, a third (32 per cent) are still lagging behind. 

Technologies such as machine learning, and process automation have transformed the wealth management experience for both advisors at private banks and the HNWIs they serve. Now almost seven in 10 wealth managers surveyed, say that a virtual platform is as essential way to enhance the client experience compared to only 25 per cent in 2016. 

The report highlights three pathways to success that will define the next generation wealth manager:

• Customer experience enhanced by digital client services and personalisation
• Insight gained through artificial intelligence (AI) and analytics
• New markets defined by the mass affluent and alternative investments as well as operational efficiencies  

Pierre Bouquieaux, Product Director Wealth, at Temenos, says: “Both HNWIs and mass-affluent investors want to enhance their relationships with wealth managers through more personalised services. Technology from the client perspective, should facilitate more active portfolio management, unlock new insights through predictive analytics and reveal opportunities that may exists in alternative investments.”

The report shows that over the past three years’ HNWIs and mass affluent are calling for better results from more active portfolio management (44 per cent) and greater predictive analytics and forecasting (36 per cent).  It also shows that technologies such as goal-based investing will be vital in the future. 

Bouquieaux adds: “Delivering personalised customer experiences will become the key differentiator for wealth managers. Temenos WealthSuite with its open API architecture enables wealth management firms and private banks to integrate and distribute third party offerings in addition to their products to offer greater personalisation and product innovation. We have also extended our Robo-Advisor module with Goal-Based Investing to capture customers’ key life goals and offer highly personalised products and services.”
In response to market trends Temenos has now expanded its market-leading front office WealthSuite with a Goal-Based Investing module. This game-changing module allows retail banks and wealth managers to address the investment needs of the growing mass affluent market segment by offering client-centric and highly personalised products and services.  The banks can benefit from offering compelling experiences and digital execution to their customers faster, cheaper and more efficiently.

Quoted in the report, Eddy Tai, global head of operations and technology at Bank of Singapore, says: “We believe that in the future, the banking model will be different. Systems will be different and connected to many partner systems and platforms, forming an extended ecosystem. In this new dimension, you need open API. You need to be more scalable through the cloud.”

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