MyPrivateBanking Blog
Daily Comments on the World of Wealth Management

Vendors and Wealth Managers Agree: Digital Transformation Only Way to Success

MASTERING THE DIGITAL TRANSFORMATION – this was the slogan of this year’s Avaloq Community Conference. Besides presenting their impressing roadmap, clients and partners had the chance to attend live demos of exciting new tools and technological developments. Furthermore, there were several highly interesting presentations and panel discussions from Avaloq representatives, partners, and wealth management companies focusing on the digital transformation in banking and wealth management.

The main insights were:

Continuous experience across all channels are key. Continuous experience across all channels beats self-service/virtual branches (2nd) and collaboration tools on digital channels (3rd) in the race for banks’ digital strategy’s top priority according to the conference attendees’ voting.

Robo technology is no nice-to-have but the prerequisite for successful advisory. According to Thibaut Jaquet-Lagreze, Head of Marketing & Sales at Avaloq, the biggest costs are no longer caused by the back-end but by the front. The use of automated services (financial health checks, real-time market information, proposal generation, etc.) is the only way for financial advisors to serve a large number of clients and, thus, to generate margins securing their jobs.

Growing critical factors are agility and flexibility. Financial institutions and their clients are becoming increasingly demanding when it comes to flexibility regarding the digital services. Here, Avaloq is a clear industry leader thanks to their unique Banklet™ technology. Barclays, whose wealth arm is relying on the Avaloq system, enable their clients to pick products and services from the Features Store to their accounts to allow for tailored solutions meeting clients’ individual needs (learn more in our upcoming report on Mobile Apps for Banking 2015 by end of September).

Vendors and banks are awaiting Generation Y. One common aspect of banks’ digital strategies was that Generation Y is just about to enter their client environment and that this leads to completely new challenges. Grown up with iPad, smartphones, and social media, young people expect their bank to offer them an integrated experience across all these channels to foster a personalized relationship and tailored wealth management services.

FinTechs’ influence is skyrocketing - crowdfunding and –lending are the hot trends. Total loans in crowdlending added up to $8bn in 2013 and are estimated to grow to $40bn in 2016 and to reach $1trn in 2025. Keep an eye on this trend and its effects on the banking industry and watch out for our new report on crowdfunding coming out this month!

Slim and integrated user interfaces are what banks should strive for. Integrated digitalization layers should serve all channels and all customers for building a common basis for internal and external customers, which significantly enhances communication. Moreover, to say it in CEO Francisco Fernandez’ words: the aim should be to “hide complexity, making it sexy to use”.

Subscribe