6 tips from BCG on digital transformation in wealth management

The wealth and asset management industry has been grappling with a formidable trifecta of challenges in recent years: rising costs, shrinking margins, and intensifying customer demands.

For wealth managers seeking to thrive in this dynamic landscape, leadership teams need to review their operating model and how their tech stack can drive efficiencies as well as new revenue opportunities. As always, the topic of client engagement is front of mind.

Boston Consulting Group recently released an insightful report on Scalable Tech and Operations in Wealth and Asset Management. Read on as we breakdown some of the key takeaways and take a look at some of the practical measures wealth and asset managers can take following these findings.

1. Enhance advisor efficiency

Front-office efficiencies can have a significant impact on overall cost savings. Wealth managers should invest in technologies that enhance advisor efficiency through automation and self-service capabilities. Streamlining front-office support tasks can lead to increased productivity and improved client experiences.

2. Address evolving client demands

Client expectations are on the rise, and wealth managers must respond accordingly. Personalization, transparency, and sustainability are crucial aspects of meeting clients' evolving demands. Hybrid advisory, direct indexing, and managed portfolio services can cater to diverse client needs and build long-lasting relationships. The delivery of content, format and channel is dramatically changing the landscape of digital engagement.

3. Embrace digital transformation

To stay ahead in the competitive market, wealth managers must fully embrace digital transformation. Clients now expect seamless digital experiences, and the industry must meet those demands. Investing in technology that streamlines operations, enhances client engagement, and offers personalized solutions is essential.

4. Focus on cost efficiency

Rising costs have become a pressing issue for wealth managers, particularly in technology and operations. Implementing cost-efficient measures such as leveraging third-party platforms can help reduce expenses while maintaining a high level of service quality.

5. Evaluate technology stack and the role of third parties

Choosing the right technology stack is critical for wealth managers. The integration of third-party solutions in non-differentiating functions can lead to operational efficiencies and reduced costs. Carefully assess the technology offerings available, considering factors such as geographic and product coverage, vendor track record, and alignment of incentives.

6. Prioritize Compliance and Security

In an era of heightened regulatory scrutiny and cybersecurity risks, wealth managers must prioritize compliance and security measures. Partnering with reputable third-party providers with proven track records in data security can alleviate compliance concerns and foster trust with clients.

How is GoUpscale helping wealth and asset managers transform?

GoUpscale offers wealth and asset managers an end-to-end content engagement and sales enablement platform designed specifically for the industry’s high data security and compliance requirements.

Our smart solutions unlock efficiencies across sales and marketing content generation while opening new revenue opportunities through streamlined activation and distribution. We help scale content engagement, reduce friction for front office teams and improve client relationships to grow business.

Get in touch with us to learn more - talk to us