Use of wealth management software is changing the industry

Wealth Management has turned into a client-driven industry and advisors are considered to be more of value additions rather than the indispensible gatekeepers. In the current scenario, use of stout wealth management software is necessary to meet increasing client demands. 

Clients in modern age are shifting their focus towards an online investment journey. They keep searching for firms online and they keep doing comparisons too online. Moreover, these informed customers are present on various social media channels and are a part of various groups that keep getting a lot of recommendations which come handy for an investor. This modern generation of investors is no more dependent only on the advice of a wealth manager due to various such factors. Digital outreach often prompts clients to take action.

Use of robo-advisor software has increased for wealth management but it never means that the personal contact has no value. Some sort of personal touch is required in deed and hence they look forward to a condition that looks favorable to them.  

Intrusion of information technology

Mobile is rapidly gaining interaction share as users have become more and more dependent on their mobiles. Mobiles are the fastest growing channel for financial services. Wealth management firms must keep this point in mind too while planning smooth services to their customers.

The comfort factor with remote engagement has increased these days. There are many clients who trust a wealth manager who is remotely placed. Millennial don’t see physical distance as a distance till the time they can interact online. More than 30 % clients across the globe are comfortable with remote engagement.

Rising expectations

Other sectors are raising expectations. Clients expect high from financial services and wealth management services. Expectations of clients are extremely high more specifically in the digital channel. 

Wealth managers can get a lot of help through various sorts of software and solutions in managing their tasks in a more efficient way. The time has come when every little thing that can get you closer to your client, will matter the most. Personalization too is a buzz word these days and leveraging technology to act as per the needs and insights of your clients will certainly give you an edge. Simplicity is one more thing that needs to be kept in mind while thinking of providing wealth management services to your client.

Rely upon good wealth management software to keep your clients happy and feel the difference!

Knowing Digital Wealth Management System

The recent years have witnessed rapid evolution of digital wealth management system. Wealth managers who cannot keep pace with this rapid changing environment, carry the risk of lagging behind. Use of right technology has become indispensable for wealth managing firms. Let’s discuss about the 4 important business areas where digital solutions can make a difference. Rise in Fintech companies is compelling players to use new approaches for staying profitable.  

The time has come to take advantage of digital wealth management system to give wings to your business. It’s apparent that the industry is required to tackle the challenges by using digital channels, IT systems and innovative solutions. 

The job of wealth managers has become more challenging now as they need to meet continuously changing client demands and remain profitable. Robo investment advisor solutions help make more intelligent decisions in more disciplined and consistent manner. 

Let’s have a look at the wealth management workflow to identify potential inadequacies:

1. Client onboarding

As per a report, less than 50 % wealth managers are happy with their firms current digital capability in terms of record keeping, audit trails and automation of KYC processes. Time is a significant competitive factor and technology can help in speeding up the KYC process while ensuring adherence to the strict regulations.

2. Portfolio management 

Wealth management firms have to provide their clients with consistent insights so as to provide the best services to all the stakeholders. These digital systems will help in collecting client portfolio, goal based advisory by recommending customized portfolio for each financial goal that are a result of robo capabilities and human intelligence. With complete automation of advice to a fine blend to create a Robo investment advisor, the wealth management becomes truly digital.

3. Investment monitoring

It's indeed a challenging task to keep a close watch on markets and the information generated there. Filters can be of great assistance in focusing analytical resources on the news that can affect your client's investments. Technological advancements make the process more efficient and effective. 

4. Ideas distribution

Digital platforms can be handy and more effective in distributing new investment ideas to relationship managers. Better connectivity ensures that relationship managers get the most up-to-date investment recommendations.

Application of technology infers that wealth managers will spend lesser time hunting for data and research and hence they will be able to speak to their clients about their investment strategy. To conclude with, it will not be an exaggeration to say that technology will ease the work of wealth managers and their firms must consider how they can scale up their processes with the use of technology.

A digital wealth management system that can help you bridge the wealth management work flow will increase the profitability of your wealth management business.

Is Robo Advisory Finding Its Foothold in India?

A number of financial initiatives these days are directed at millennials who believe in what they read or see online. One such initiative is “Robo Advisory” which helps investors with their online investments. Robo advisors are now a crucial part of a wealth management digital platform, which uses artificial intelligence and data-driven information to provide accurate financial advice to new and experienced investors. 

The Emergence of Robo Advisory in India

When robo advisory services were initially started, many investors assumed that it was of use to investors with less or zero financial knowledge. But, with a little human intervention, robo advisors can now plan and rebalance a complete investment portfolio and suggest the right fund to choose based on the client's financial profile. Thanks to the efficient advice provided, a number of companies using robo advisory services have seen a sudden spurt, but the funding in the sector still needs to reach its high. However, as per the experts in the industry, one can expect a rise in the digital wealth management platforms and wealth advisory services as there is a need to reduce the human intervention when it comes to sales jobs as well. Wealth advisory can see a sudden sprout in the coming years as the industry as a whole is under a strong tailwind with the adaption of technology and regulatory changes. 

Technology is expected to play a vital role in wealth advisory than compared to past, given the usage of smartphone, increase of comfort using online and in-app services/transactions and the decrease in commissions charged.

Any digital wealth management platform needs to focus on the advisory services provided as there is a need to tailor them to meet the needs of Indian investors. Most of the mutual fund platforms have responded to the investors and market needs and have evolved as successful hybrid advisory platforms-where investors can receive human and robo advisory services. Such advisory services go by the name of “Bionic advisory” and this works best in Indian markets.

The needs of Indian financial markets are unique and it would certainly take time for investors to accept pure robo advisors. However, robo advisory services certainly have a long way to go in terms of both investments and advancements.

Value Added Benefits of a Robo Advisory Investment Platform

Thanks to Robo-Advisors, there has been a fundamental shift in the way the automated wealth management platforms are now operating. The financial industry has seen a massive revolution in the sector from the past few years and this is possible with the use of technologies like Artificial and Social Data Intelligence, Machine Learning and Blockchain. These disruptive technologies are helping solve various critical business problems. 

The Robo-advisor software, which happens to be the best wealth management software, enhances efficiency and ensures that the customers have more control over the wealth management system.

With the use of a Robo advisor software, customers can easily invest and save in various types of mutual funds or ETFs – all without any human intervention. Being an automated process, it only provides accurate information and saves time but is also convenient at the same time. No more hassles of visiting a branch or the need to submit physical documents as with artificial intelligence and automation, the complete process is completed within a few minutes over the internet.

The Robo-advisory firms have undergone a very major evolution globally. Most of the firms now offer dedicated fund management services, portfolio rebalancing based on algorithms and hybrid models with robo and human advisors too. Some of the other services provided by the Robo-advisory firms are aggregation of accounts, customization and detailed view of the financial health of customer and optimization of the customer’s portfolio based on the investment capacity and risk appetite. 

The Evolution of Hybrid Robo-Advisors

Hybrid robo advisors have been welcomed by both wealth management companies and investors. Some of the advantages these advisors provide their clients are transparency, low cost and convenience. Clients can also bid goodbye to the pain of maintaining physical records, thanks to the option of diligent ledger keeping. 

Also, many assume that “Robo” suggests a platform that is completely automated and does not involve any kind of human intervention and that the firms using such a feature cannot provide customized services. This is however not true. The fact remains that robo-advisors do provide personalized services with human intervention. Clients can not only chat with the representatives but can also talk to them over the mobile or through the platform. 

With the online investment and wealth management platforms undergoing evolution, robo-advisors now have to improve further to reach new avenues in advising clientele.