Despite the growth in the recent past, the international wealth management sector is involved in various challenges. Wealth management organizations must transform their business operations to negate the challenges and make the most of the opportunities.
The international wealth management sector has expanded greatly over the recent past and is looking at more growth in the coming years.
The main reason for the growth is an increase in the number of HNI’s globally. However, it has to overcome key issues – client technology transference, emerging revenue stream to maintain the growth trajectory.
Firms must have a comprehensive client segmentation and valuation plan to succeed. The client onboarding process is also outdated and looked upon as a cost factor.
WM institutions don’t have the financial plan to offer a wide array of services to the client in a unified manner. They must augment their business model, revamp their strategy.
A Relationship Manager becomes a vital point of contact for the client. The Relationship Manager must be supported by product experts. Integrating the service models would be the key to success.
Mega WM organizations must streamline their multidimensional ventures providing lending, consumer banking and other services along with the wealth management service. There is a shift in the demographic pattern across nations.
Firms must ensure their business model is in line with the international investment requirements of the clients and make use of the business opportunities due to increase in retirement requirements and transforming demographics.
Firms must have a client centric method to ensure they provide a distinct client experience. They must deliver an amalgamated approach to the client and ensure they are able to view all the assets that are not available in the firm through a web front end.
Modified MIFID, US Dodd-Frank Act, UCITS IV, Basel III, FATCA are few of the regulations governing the Wealth Management sector. Therefore, firms must look at enhancing the effectiveness of the compliance programs and emphasize compliance requirements.
They must use, powerful data management and reporting tools. Streamlining processes and ensuring operations perform at optimal levels is a key.
Monitoring key metrics is vital in enhancing the process efficiency. If WM organizations do not manage the client onboarding process properly, they would miss on the asset growth opportunities.
At present, firms are not able to accomplish the clients’ requirement of immediate access to their account information through the mobile devices.
Leveraging a business process management solution would enable firms to manage risk, reduce cost, and efficiently handle client relationship.
Utilizing BI solutions would assist the WM institutions holistically. Firms must be cautious while investing in technology and outsourcing the non-core businesses.
The Global Wealth Management sector must follow powerful strategies to enhance its brand equity. They must adopt a holistic approach towards key challenges and the accompanying opportunities.