Technologies such as generative artificial intelligence (AI) or machine learning (ML) are already transforming wealth managers’ operations. Automation of routine tasks can free up time otherwise spent on manual processes and improve the quality of insights distilled from data.
Before an investment team can achieve such benefits, however, they must first overcome any barriers to embracing the technologies themselves. Creating a culture of openness towards innovative digital tools takes time and attention. Here is where to focus yours:
01 Stay Consistent with Corporate Strategy
Firstly, decisions about which technologies the firm should adopt should be made at the board level in order to ensure alignment with high-level business strategy. Internal research or consultation with external experts may be necessary to establish where cutting-edge technology like AI can add the most value. Identifying useful digital solutions, however, is only the first step to getting them adopted. Their usage and performance should be monitored and adequate user support should be available over the long-term. Using a new tool almost involves some form of risk – such as placing too much trust in potentially biassed AI-generated answers to questions – but such risks are manageable with proper awareness and training.
02 Gradually Introduce New Technologies
The process of increasing operational efficiency is rarely fast, even if the potential benefits are clear. Wealth managers’ back offices, for example, have a lot to gain from AI solutions that can sort vast quantities of data, automate repetitive processes, and accurately identify statistical outliers. AI can also handle routine queries from clients and thereby allow relationship managers to serve a larger, more diverse client base with a human touch where it matters most. Additionally, advanced analytics software can automate prospect mapping and identify clients at risk of churning.
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Do not expect your team members to see or experience such benefits immediately, however. Make a new tool you have selected available to them, encourage them to get familiar with it step by step, and make sure support is available when they need it.
03 Keep It Simple
The best way to make adopting technology simple for your team members is to show them how it solves their particular challenges. Here, your first step is to understand those challenges. Engage your team early and often to understand their needs, expectations, and concerns. Be sure to solicit their feedback, input, and support.
04 Emphasise Client Expectations
Digital transformation in wealth management is revolutionising client services. The rise of digital wealth management platforms is among the most powerful examples of how technology can democratise financial services. Thanks to digitalisation, good wealth management has become more accessible than ever, with clients able to receive highly personalised and data-driven recommendations and holistic overviews of their financial lives. Digital wealth platforms enable not only better investment management but also more insightful budgeting, financial goal setting, and expense tracking.
Make it clear to your team that it is not just you expecting them to go digital. Your firm’s clients are too!
05 Build A Culture of Innovation
Busy wealth firm professionals may struggle to see the point of learning how to use new technology. Such scepticism is not a question of time, however. It is a question of culture. Aim to build curiosity around a new tool and how spending a couple hours experimenting with it could save twenty hours next month. In other words, simply explaining technical details and features will be unlikely to get your team excited. Strive to build a culture of interest around new technologies and a willingness to explore the potential value they can unlock.
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