WealthBriefing's Tech And Ops Trends In Wealth Management Research Report

Editorial Staff

15 October 2024

The expanding range of digitalisation for the world’s wealth management sector is highlighted, along with other major trends, in the Twelfth Edition of the WealthBriefing Tech and Ops Trends in Wealth Management 2024 report. (To download it, click here.)

The report, which has been produced in conjunction with the consultancy, shows that the sector is going through major changes, using new technologies to become more efficient, deliver more personalised solutions to clients, and improve their experience.

In one of the most significant results, the authors of the report note that, after the investment and progress seen in the past two years, respondents gave their firms an average score of 5.3 out of a maximum of 7. This result is an improvement from the 4.7 result achieved in 2023, making it the highest average score since 2021.

The annual report is an important part of the work that the publisher of this website produces, shining a light on the details that can make or break a wealth management organisation, be it a private bank, independent financial advisor or multi-family office. Running for more than a decade, the report gives a consistent picture of how technology and operational issues have evolved since the aftermath of the global financial crisis.

Progress
All respondents to the survey said that their firms showed good and acceptable progress against expectations (100 per cent scores above four) while 7 per cent felt able to give their firm a full rating of seven for digitisation.

The study also reveals that the gap in digitalisation between different regions is continuing to narrow.

The level of automation has consistently risen, the report says. On average, 70 per cent of firms and institutions are gaining momentum on maximising automation in portfolio construction and rebalancing – for example, up from 65 per cent in the previous year.

There are challenges, such as data input points, to timeliness and accessibility, but most firms are moving forward, the report finds.

The report also carries findings about client custodial data, risks such as cybersecurity, IT outages, as well as challenges from regulatory change and changing business requirements. The study touches on the increasing use of outsourced services, the decisions feeding into technology budgets, ESG matters, advanced technologies, the impact of technology on organisations, and the importance of demography, for example people with particular skills retiring.