The recent roundtable discussion hosted by Compeer and Objectway brought together esteemed leaders from across the UK wealth management spectrum – each representing firms with varying levels of AUM. Against the backdrop of escalating operational costs, this time the discourse focused on identifying inefficiencies, exploring avenues for improvement, and harnessing technology to drive productivity.

Operational costs, specifically the non-staff related ones, have been on a relentless upward trajectory over the past decade. However, participants acknowledged that they would need to invest more in enabling automation in this area to ensure greater operational efficiency and help to achieve scale as opposed to having to introduce more manual processes as was often the case.

Technology emerged as a pivotal enabler in the quest for improved productivity. Indeed, all of the group were either already engaged in technology change projects or were about to embark on them. From the right technology being implemented into the digital infrastructures, to embracing self-servicing capabilities for clients, the consensus leaned heavily towards leveraging technology to alleviate pressure on both the back and front offices and give back time to employees for more value-added tasks and outcomes. Enhanced methods for measuring productivity and refining KPIs were also identified as crucial components in this evolution.

Amidst the myriad of potential initiatives, participants emphasised the importance of establishing clear priority lists for internal projects. With a focus on projects yielding tangible monetary value, there was a call for investments to not only target the back office but also extend to the front office. This holistic approach underscores the overarching goal of improving the overall operational efficiency of wealth management firms.

A key takeaway from the discussion was the symbiotic relationship between operational efficiency and revenue growth. By redistributing workload, optimising processes, and embracing technological advancements, firms stand to not only enhance productivity but also attract additional clients to the market, ultimately bolstering revenue streams.

In essence, the roundtable discussion served as a catalyst for introspection within the UK wealth management industry. As firms navigate the evolving landscape, the imperative for back-office transformation looms large, with technology, strategic prioritisation, and a holistic approach emerging as the cornerstones of operational excellence. By embracing these principles, wealth management firms can chart a course towards sustained growth and competitive advantage in an increasingly dynamic environment.