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Slow client adoption has been one of the most significant barriers to innovation. According to a recent report, half of the wealth managers believe their firm's ability to go digital and take advantage of new technologies is hampered by less tech-savvy clients.
Fremont, CA: Despite the fact that the wealth management industry recognizes the importance of digital innovation, few organizations achieve any business value from their transformation initiatives.
This is because most wealth management firms approach digital transformation as a feature selection exercise, implementing stop-gap solutions to address a pressing need to compete or keep up with consumer trends. As a result, businesses are left with digital capabilities that are basic, disconnected, and insufficient to meet the needs of their clients.
With a changing market, intense competition, as well as new technologies reshaping the industry, wealth management firms understand all too well that long-term survival and success are dependent on how they respond to the digital wave.
Here are the top five digital transformation challenges faced by wealth management organizations:
Risk-averse Culture
Most organizations recognize the importance of digital innovation, but it must begin with leaders and CEOs. A traditionally relationship-focused company may be hesitant to embrace digital optimizations, preferring to survive abrupt upheavals like the pandemic in the hope of returning to "normal." While some in-person interactions are likely to return, it is also likely that clients who were forced to use digital channels will be more comfortable using them in the future. It's possible that the pandemic forced some technological upgrades at your company, but it's critical that members of your wealth management team continue to pursue digital optimization. Content services technology, when deployed strategically, supports the core of one's business, offering a great experience and financial outcomes for clients.
Lack of Client Demand
Slow client adoption has been one of the most significant barriers to innovation. According to a recent report, half of the wealth managers believe their firm's ability to go digital and take advantage of new technologies is hampered by less tech-savvy clients. Nevertheless, it is known that following the 2020 upheaval, most people increased their comfort level with using digital channels for industry-wide tasks.
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