The second edition of the Senior Leaders Forum we co-hosted with Compeer, specialists in research and benchmarking, brought together a group of leading wealth management firms to discuss the value technology is providing to drive productivity and future proof their front office.

Success is defined by ROI

Compeer data revealed the benefits of digital change across the industry, with a strong correlation between IT investment and front office productivity, as the benefits of technology amplify with the pace of digital change.
Firms that spend more on IT and Operations per front office professional see a greater average managed revenue per each professional and greater profit margins.
That being said, the data also highlights disparity in productivity across the industry, e.g. firms with a front office more than six times as productive as a rival firm with comparable levels of operational efficiency.

Client expectations and scalability

Wealth firms’ investments are mainly targeting a modern investor portal, as in large part the hybrid environment created post pandemic has reshaped the development of their digital roadmaps.
While constantly looking to refine the value and the uniqueness of the digital experience they provide, the focus is progressively shifting towards how digital can drive scalability throughout the whole front office.
Firms are looking for ways technology can integrate their systems to offer end-to-end automation and also a seamless and efficient experience for investors. For Wealth Managers who offer both Wealth Planning and Investment Management, digital change should be able to join these two business lines to give a holistic view of both.

A matter of (digital) culture

Whilst the industry is changing, the difficulties with budgets, legacy systems and regulation remain almost unavoidable in wealth management. But the greater concerns reported during the discussion in the Forum are mainly related to cultural bias and old school mindset.

A significant cultural shift is required in tandem with investments to encourage front office professionals to embrace digital change and move beyond their comfort zone. Some staff still need to be convinced of the benefits that technology change can bring to their status quo. Indeed leveraging digital capabilities will enable them to become more effective in day-to-day tasks and enable more time for value added activities with clients.

Also, Digital change should not be seen as a recipe to turn farmers into hunters overnight, however it will certainly enable more efficient retention and attraction of clients.

Once again, the forum provided a thoughtful occasion to shape thought leadership, exchange ideas and draw upon insight from industry leading experts.

Want to read the full report from the Senior Leaders Forum? You can download it here