Much has been said and written about the digital channels and cloud-based platforms for wealth management. It is becoming widely accepted that digital channels and omni-channel platforms significantly contribute to the firms’ performance and client relationships. By selecting the appropriate approach, firms can have an enhanced two-way and immediate communication and more profitable relationship with their clients.
The above are also supported in the recent study by GapGemini published and presented at WealthBriefing*, stating that “Wealth managers in Capgemini's study said digital tools were useful for a variety of tasks, such as helping to work with clients (85.9 %), greater use of client data to hunt for growth opportunities (82.1 %) and scrapping paperwork (82.1 %). The benefits of using digital tech are also stronger in the eyes of younger managers, the report said. “ The report also elaborates on the commitment and investments made in FinTech by banks as well as presenting the elements of FinTech rise internationally ranging from “robo advisors”, big data, artificial intelligence, use of mobile platforms such as tablets, two-way video conferencing and messaging, biometric verification, to blockchain distributed ledger systems”.
However, apart from the digitisation of the communication there are other parameters that affect the operations of a wealth management firm. These very well include the regulatory changes and requirements, services and strategies proposed, as well as the cost implications to the business. To effectively accommodate these, (as it also derived from the recent Profile’s and ComPeer’s research), firms would also need the backing of technology.
This is in the context of adhering to the regulatory requirements, providing alternatives and offering fast development of new services and adjustment of existing ones. Furthermore, an industry–focused system should also enable for flexible client risk profiling, investment proposal and onboarding capabilities in order to increase business agility while complying with regulations. To be efficient and effective, these processes should be performed over any computer or mobile device.
Given the recent market developments, it becomes important for the wealth management industry to measure and understand the market risks undertaken. The investment management platform developed by Profile enables market risk measurement and control through multiple methodologies, back- and stress-testing as well as specialised reporting.
In addition, Profile’s investment management solutions are aware of international legislation and standards like Foreign Account Tax Compliance Act (FATCA) and the Common Reporting Standard (CRS) in the context of the Automatic Exchange of Information (AEoI). Profile solutions collect the required client information, include standard client onboarding workflows that identify these legislations and standards, collect the relevant documentation, review the records of existing clients, produce the required indicia and statuses, and provide information about clients, their assets and transactions as needed, to the Financial Institution’s central FATCA or CRS solution.
Further to the above Profile is expanding with its FinTech solutions across various regions. Watch Profile’s regional Managing Director, Akash Anand, elaborating on “how to work effectively with fintechs” at an interview given to Hubbis , here.