Wealth Managers face ‘Fight for Survival’, says Temenos Study

The report, The Rise of Bionic Wealth: A Hybrid Model of Cutting-Edge Technology and Advisor Expertise Heralds the Future for Wealth Managers, explores how Generations X and Y now move ‘effortlessly across both the analogue world of face-to-face meetings and the virtual world of digital platforms that enable the fast and accurate service they expect’.

The research suggests that success, even survival, for wealth managers will depend on giving rising client segments what they need in terms of service and financial performance. An increasingly complex set of customer demands will mean that firms must modernise their technology approach without alienating older clients, still the bedrock of their business.

Pierre Bouquieaux, Product Director, Wealth Management at Temenos, said:

“With this generational transfer of wealth underway, firms must be alert to the challenges presented by a more complex set of customer needs – as well as growing cyber risks. Yet, this is a fantastic opportunity. These findings highlight that increasingly intelligent technology will help wealth managers redefine processes, find new efficiencies and build better relationships with their clients.”

Temenos, in partnership with Forbes Insights, surveyed more than 60 wealth managers and 35 High-Net-Worth (HNW) clients about the evolving banking experience—how they communicate, their needs and the importance of technology. The report includes commentary from executives at leading investment and private banks. Key findings include:

• Over 40% of wealth managers believe that a mix of digital and offline ways of communicating is ideal;
• Over a third (34%) of HNW clients now demand some form of digital communication from their wealth manager;
• Almost two thirds (62%) of HNW clients are now in favour of ‘the digitisation of wealth management services’ – but still want to meet often with an advisor;
• Just under a fifth (17%) of HNW clients say technology is now essential;
• Around half (48%) of HNW clients rate cyber risk and hacking as a top concern related to the use of technology.