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Davies Wealth Management 4.0: Purposeful Digitisation

Davies Wealth Management 4.0: Purposeful Digitisation -- News Post Image

The launch of the app store in 2008 showed people how useful and innovative mobile apps could be. Fast forward to almost two decades later, and our entire global economy wouldn’t survive without technology. When it comes to fast transactions, work out routines, or even paying for parking , technology is integrated massively into our lifestyles.

As much as this is a convenience to many areas of our lives, the financial advisory and wealth management industry still has some catching up to do.

In this article, we will explore a study from Davies: Wealth Management 4.0, and highlight how the client expectation gap is actually an opportunity for firms that want to stand out from their competitors and deliver a service that exceeds client’s expectations. 

Addressing concerns: Your clients increasingly expect more

Today’s clients no longer accept delayed updates or static communication; they demand real-time access to their financial portfolios and tailored insights.

Davies' research shows that 70% of clients now expect real-time access to their financial data and a personalised, seamless experience.

Clients who feel underserved are quick to explore alternative providers, especially those offering robust digital solutions. Two-thirds of inheritors will fire their parent’s adviser when they inherit. Wealth transfer is a growing threat to adviser firms, but it is also a great opportunity.

Wealth management firms must rise to the challenge by embedding personalisation, transparency, and accessibility into their client engagement strategies, ensuring they not only meet but exceed expectations.

Client Satisfaction

With the rise of Artificial Intelligence, and one in five younger investors now turning to TikTok for investment 'ideas', the direction of the financial advisory landscape is unclear.

Many advisers feel threatened by AI tools, but at moneyinfo we know that new technology will only compliment advisers, allowing them to focus on building relationships with empathy and expertise.

Davies found that digital-first experiences can improve client satisfaction by up to 30%.

Features like personalised dashboards, secure messaging, and 24/7 access to real-time financial information empower clients with the tools they need. This is because clients seek a high level of transparency and convenience.

Platforms that provide 24/7 accessibility to portfolios and financial insights cater directly to these expectations, allowing wealth managers to stand out as trusted partners in an increasingly competitive market.

By prioritising client satisfaction through digitisation, wealth management firms can set themselves apart.

The internal battle: operational inefficiencies

The cost of maintaining outdated systems in wealth management is becoming increasingly unsustainable. Firms relying on traditional workflows experience operational inefficiencies that impact profitability.

Davies' research highlights that Firms relying on outdated processes are spending up to 25% more on operational costs than their more digitally advanced competitors.

Legacy systems remain a significant hurdle, with 65% of firms still operate with legacy systems that drive up costs and slow down operations. Furthermore, firms still relying on traditional, manual workflows are seeing a 25% increase in operational costs due to inefficiency and error-prone systems.

Firms must embrace digitisation and automation to reduce reliance on outdated workflows, minimise costs, and unlock productivity.

Regulatory Compliance

Regulatory compliance is one of the most resource-intensive challenges facing wealth management firms today.

According to the Davies report, over 80% of firms report that regulatory requirements have become increasingly complex, requiring more time, effort, and financial resources to manage effectively.

Manual processes increase the likelihood of errors and making compliance a costly and inefficient exercise.

Automation has emerged as a critical tool for streamlining compliance processes. By digitising workflows, firms can reduce administrative burdens, improve accuracy, and ensure compliance tasks are completed on time.

For example, Davies found that firms using automation tools report a 30% reduction in administrative costs, freeing up valuable resources. Automated compliance systems also provide detailed audit trails, ensuring firms can meet regulatory requirements with confidence.

Automating routine tasks, such as regulatory reporting and compliance tracking, frees up staff to focus on more strategic areas of their business.

To read the full report from Davies, click here.

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