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Wealth Management Goes Digital

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Digital wealth management is the use of technology to  help clients manage and grow their wealth . It also offers investors a range of savings and investment products. The wealth management industry is on the verge of digital transformation. With clients demanding greater personalization and efficiency,wealth managers are adopting digital strategies to remain competitive. Given below are strategies that wealth managers should adopt to make sure that they are adapting to the needs of customers.

Omnichannel customer communications and engagement

Omnichannel customer communications in wealth management is  a strategy that allows organizations to communicate seamlessly across all print and digital options, depending on the investor’s choice of channel and format. It is important to identify gaps in communications strategies, because these might cause friction in client experience. Investor communications should address the emotional side of recovering from the economic downturn of the pandemic, and other personal situations that may have impacted consumers’ lives.

Automation for growth

Automation is an essential facilitator of growth for wealth management. According to leading financial consultants, a sizable amount of business processes related to investing can be automated. This includes KYC checks and data centralization. Automation of day-to-day activities such as investor report consolidation, automated portfolio rebalancing, and fee processing, drives higher and faster ROI.

Prioritizing customers

The new wave of investors which include Baby Boomers, GenX, and GenY investors want to be treated as individuals with specific preferences and goals. They are willing to do their own financial research, and should be given tailored advice. Customers should be made the center of digital transformation strategies. Firms should analyze how customer expectations are changing, and should make sure that they are adapting to fulfill them.

Focus on the outcome

Rather than focusing on generating the highest possible portfolio return, outcome or goal-based investments measure clients’  progress towards specific life goals, such as saving for children’s education or building a retirement nest-egg. Focusing on the outcome is different from traditional investing, as the focus is put on how well the investor is able to meet their personal life goals rather than on how well their investments perform against the market average. This necessitates the use of advanced client profiling and digital data management tools, so that clients receive truly personalized and relevant experiences.

Use of big data

Wealth management firms should adopt more descriptive and predictive analytics that combine internal and external, structured and unstructured data, to create more complete and insightful client profiles. This method will allow firms to assess existing or potential clients’ propensity to purchase various products and services, their lifetime value, their style of investment, and their tolerance for risk. The use of big data can help firms guide their customers to make more informed investment decisions. Big data helps wealth management firms gain informational edges and push boundaries by moving beyond conventional data sources and leveraging alternative forms of data.

Ronn Torossian is CEO of 5WPR, a leading PR agency.

Ronn Torossian

Ronn Torossian is the Founder and Chairman of 5WPR, one of the largest independently-owned PR firms in the United States. With over 25 years of experience crafting and executing powerful narratives, Torossian is one of America’s most prolific and well-respected Public Relations professionals. Since founding 5WPR in 2003, he has led the company’s growth, overseeing more than 275 professionals. With clients spanning corporate, technology, consumer and crisis, in addition to digital marketing and public affairs capabilities, 5WPR is regularly recognized as an industry leader and has been named “PR Agency of the Year” by the American Business Awards on multiple occasions. Throughout his career, Torossian has worked with some of the world’s most visible companies, brands and organizations. His strategic, resourceful approach has been recognized with numerous awards including being named the Stevie American Business Awards 2020 Entrepreneur of the Year, the American Business Awards PR Executive of the Year, twice over, an Ernst & Young Entrepreneur of the Year semi-finalist, Metropolitan Magazine’s Most Influential New Yorker, a 2020 Top Crisis Communications Professional by Business Insider, and a recipient of Crain’s New York 2021 Most Notable in Marketing & PR. Torossian is known as one of the country’s foremost experts on crisis communications, and is called on to counsel blue chip companies, top business executives and entrepreneurs both in the United States and worldwide. Torossian has lectured on crisis PR at Harvard Business School, appears regularly on CNN & CNBC, is a contributing columnist for Forbes and the New York Observer, and has authored two editions of his book, “For Immediate Release: Shape Minds, Build Brands, and Deliver Results With Game-Changing Public Relations,” which is an industry best-seller. A NYC native, Torossian is a member of Young Presidents Organization (YPO), and active in numerous charities.

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