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Wealth Managers Grumble Over Tech Systems – Avaloq

Amanda Cheesley

5 March 2024

The majority of wealth managers are either dissatisfied with or indifferent to their technology systems, viewing them as outdated, not suited to their needs and difficult to use, latest research from shows.

The study was conducted among 200 wealth managers with a minimum of five years’ industry experience in Germany, Switzerland, the UK, Singapore, Japan and Hong Kong, including contributions from Datos Insights, BlackRock, Synpulse and Accenture.

The research revealed that 45 per cent of respondents believe that their systems are outdated and that 25 per cent are indifferent, compared with 31 per cent who are satisfied that their technology is up to date. Meanwhile, 29 per cent believe that their technology is designed to suit their needs and 38 per cent say they can easily find the information they need. 

The research demonstrates that for all the talk surrounding tech adoption, there is still scope for the industry to exploit it by using technology more comprehensively. The publisher of this news service chronicles developments in technology and operations in annual studies of the sector. See the latest example here. 

According to the survey, just over half of wealth managers globally use investment advisory technology in client meetings. Of those not yet using their advisory systems in client meetings, 67 per cent would like to, indicating a significant opportunity to integrate systems that are up to the task.

Barriers
The biggest barriers to using advisory tools in client meetings, cited by a majority of wealth managers, are user interfaces that are not optimised and technologies that are too confusing to use with clients.

Despite this, they recognise that technology has the potential to provide huge benefits, highlighting the automation of client onboarding, data analytics and visualisation as the leading benefits.

“Our research reveals that too many wealth management professionals are burdened with complex, outdated technology systems that do not provide them with the support they need in client meetings,” Suman Rao, managing director for the UK and Ireland at Avaloq, said.

“Often, wealth management professionals use too many different systems and would benefit from simplifying or consolidating their technology ecosystem. Finding the right partner will help them to streamline their operations and better use their technology to improve client service,” he continued.

“A streamlined, user-friendly advisory platform designed for real-time client interactions can address these concerns. Deploying an end-to-end platform is all about scaling the personalised proposal generation process with effective and compliant investment proposals that are easy to execute,” Britney Lewis, head of advisory product for Aladdin Wealth Tech at BlackRock, added.