It cannot be denied that exponential technologies and changing needs of clients have the greatest impact on the way that the provision of wealth management services develops over time. Adoption of new technologies, together with changes in the approach to customer value creation are the main determinants of change now and in the future. Forecasting the possible direction of change, Deloitte experts from Monitor Deloitte Strategy Consulting and the Core Banking Transformation team identified the following possible transformation scenarios.

Full automation

Wide access to large volumes of data enables the development of automated cognitive solutions. Such solutions already allow for instant analysis of dozens of information sources, search for patterns, anticipation of changes and threats, and, therefore enable faster and more effective decision-making. AI developments, such as personal banking assistants, are already able to identify the best deals for customers and offer them without the current high dependency on humans. As Deloitte research shows, more than one-third of wealth managers introduce artificial intelligence to their companies’ operations by creating platforms based on data visualization. This is one of the key strategic priorities.

Full automation does not necessarily mean no human interaction. Deloitte experts forecast that adoption of automation solutions will lead to a hybrid scenario where a trusted adviser is equipped with data and analysis performed by artificial intelligence.

Experience is the new loyalty

Ever increasing customer expectations with regard to their service experience coupled with the capabilities of cognitive solutions are creating a new trend in product and service development – mass personalization. Analytics and cognitive capabilities illuminate the context of customers’ needs and desires, and determine the optimal way to engage with them. This tremendous transformation changes the method of engagement from a customer acquisition-focused activity, to one that enables a superb human experience, grounded in data, across the entire life-cycle of the customer journey.

Today, clients want to access services anytime and anywhere. They expect it to be easy, intuitive and multi-faceted thanks to various communication channels and data sources. Research shows that there are more people among users of tablets over 60 than under 24 years of age, thus it can no longer be said that technological barriers are limiting access to digital products and services. By developing new approaches to data gathering, decision-making, and delivery, wealth management companies can now create personalized, contextualized, dynamic end-to-end experience for the individual customer. This is the key to providing exceptional customer experience and increasing customer loyalty.

Technology, which on the one hand allows for a thorough examination of opinions, needs, and behaviors of customers, and on the other hand, a precise analysis of the effectiveness of investments in the buyer's experience, is a great ally of this approach.

Value segmentation

The remaining element of transformation, as indicated by Deloitte experts, is the change in the structure of the value chain across organizations delivering wealth management services. Rather than aiming at full integration of all areas, the forecast points to a scenario of an interlocked structure, where service providers can easily select to offer only those elements that are the most appealing or profitable for them. This sometimes means partial outsourcing, or the use of external specialists to handle part of the value chain.