Asset 1
Role of Client Communications in Wealth Management
A New Study into the Essential Role of Client Communications in Wealth Management

Wealth management is one of many industries being remade in the forge of big data and advanced analytics. Incumbents face the familiar challenges of digital disruption: adapting to fast-changing customer expectations, defending against new and agile competitors, and complying with new regulations – such as GDPR and MiFID II – that impact service and revenue models.

In a soon to be published study, Aite Group, an independent research and advisory firm focused on the financial services industry, commented: “It is important for any firm that wants to remain relevant to differentiate itself by giving clients the most tailored and positive customer experiences, especially when regulations are tightening their grip on industry participants and clients are getting more demanding.”

“It is important for any firm that wants to remain relevant to differentiate itself by giving clients the most tailored and positive customer experiences”
– Aite Group

Commissioned by Digital Reasoning and due to be released in early December, the Aite Group study takes the temperature of the wealth management industry. It explores the drivers for change and examines how firms are responding.

What’s clear from the research is that wealth managers are keen to use data as a key differentiator. Aite advises that the crux of this lies in leveraging all available data. This means going beyond structured data, encompassing harder to analyze unstructured sources and extracting information that is actionable and relevant to individual customers.

Defining a strategy

Wealth management is a relationship business, meaning that communications is invariably the most abundant source of data for deep customer insights. Though the majority of firms have focused on developing a single customer view over recent years, there is still a long way to go before the industry is able to mine and develop intelligence from unstructured communications. The scope and pace of change, both for the industry and the technology it uses, has made it difficult for leaders to set strategies for achieving this goal.

The Aite study has sought to draw some conclusions by exploring the current and intended future positions among global wealth management firms. Between March and August this year, Aite analysts interviewed industry leaders and explored the following topics:

  • Strengths and areas of improvement for internal processes and client retention
  • Regulatory considerations related to wealth management
  • Technology used for identifying risk and opportunity with communication data (AI)
  • The understanding and potential use of AI for understanding human communication

The research has revealed some key areas of focus: the challenges firms face in harnessing client communications data, how regulation is changing wealth management business models, and strategic priorities among C-suite executives for insights from next-gen analytics technologies.

Register for the Aite Group webinar

We’ll be discussing these and other findings in a live webinar, hosted by Aite Group, on November 27, 2018. Webinar participants will receive early access to the full study report, ahead of its general publication. Click here to fill out a brief registration form.

Written By
James Ollerenshaw

James Ollerenshaw is Director of Content Marketing at Digital Reasoning. He has worked in technology marketing for almost 20 years. His experience includes running marketing agencies, representing high growth and established tech brands, and leading the Forrester Research Executive Leadership Board for technology marketers in EMEA for over 3 years.

Find James on LinkedIn