Pandemic has led to digitalization in wealth management.
Pre-covid, most wealth managers and private banks were working through 3 or 5-year digitalization plans.
There were certainly some effects of digitalization.
These unprecedented circumstances had affected investors (clients), wealth managers and wealth management firms. Investors their portfolios getting impacted directly, due to market drops.
Wealth Management Firms were affected as revenues associated with trading and fees tied to assets declined consistently due to market performance.
Young clients tend to like convenience of self-service portals & applications.
Some new entrant were generating noise and making life a bit difficult at the lower end of the market.
Fee revenue was diminishing.
With the advent of Pandemic, physical meeting with clients had become impossible, which demanded a major shift in servicing clients.
During this time, markets had become highly fluid and clients needed consulting and assurance.
Simultaneously, financial institutions’ workforce was sent home under quarantine which meant running the company with everyone working remotely.
This change required a major rethink in operating models.
Now, digitalization was not a long-term plan.
Eventually, wealth managers had to find a way to invest, and grow portfolios.
Wealth managers had to look through and be ready for what is on the other side, as the world was moving towards the new normal.
Wealth Management in a post-pandemic world.
People needed more hand holding in the aftermath of the worldwide pandemic crisis.
In the affluent space, wealth managers have to differentiate themselves and help customers make better savings and Investment decisions.
Financial advice and investment solutions are interlinked.
• Clients have started embracing digital options
• Process Transformation
• Software which enables Collaboration will be key