Financial Services does not have a great reputation for making things easy for consumers. Hard-to-find information, jargon-heavy policy documents and limited office hours are just some of the complaints that customers can have of the industry.  

Technology offers a solution. It can help change negative perceptions by getting people more engaged in the process of exploring their investment options, developing financial goals and tracking performance. Technology can also be deployed to provide access to new clients and new markets, as well as extending service to more clients. 

But technology is not a panacea and if firms have a poor service proposition or a bad operating model applying technology will only amplify things. Put simply, it cannot be considered in isolation. This means it is crucial for wealth managers to take the time to listen to their customers – before they start introducing new technology to their businesses. 

The need to listen to customers is re-enforced by global research from Roubini ThoughtLab. Its Wealth and Asset Management 2021 report found that 37 per cent of digital leaders believe any successful technological strategy needs to be closely aligned to a clear customer one. In addition, the poll found that investing adequately in new technologies, nurturing an innovative culture, developing an effective transformation process, and bringing the right talent on board are extremely important.  

Crucially, customers themselves are starting to expect more from their financial services providers. According to the research, clients are demanding more customised solutions (72 per cent), the use of the latest technology (62 per cent) and greater cybersecurity (63 per cent). Adapting to meet these demands is likely to be daunting enough but the survey also shows that investors are asking for more in other areas too – a wider range of investment options (64 per cent), advice that delivers higher returns (40 per cent) and lower fees (35 per cent).

To deliver the intended benefits, firms need to be clear on why they see technology as an enabler and what the expected results are. They also need to be honest with themselves about their capability to change and deliver the transformation needed in the business to support the technology change, such as processes, training and culture shift. The pace of change in terms of consumers’ expectations and market developments mean that change is now a constant which is accelerating at pace.  

Before even thinking about technology solutions, firms need to ask themselves some searching questions about their overall operations. Are they as profitable and efficient as they would like? Is there scope for looking at new ways of doing things? It could be time to start making some changes.  

For those who see technology as a key enabler, significant opportunities are there for the taking. However, technology is only one of a number of factors that will help firms deliver a service which delivers value, is relevant to their clients, compelling and differentiated. 

If technology is to be successful, wealth managers need to start with their clients and understand how they want to be served, explore options with them and take their feedback on board. You might be surprised what they tell you!