After last year’s robust growth in private wealth, wealth management firms will have to improve asset-gathering capabilities, refine business models, and boost their digital communication in order to stay competitive, according to a report released by the Boston Consulting Group.
“Winning wealth managers, in any region, will be those that find the optimal business model for their own resources, capabilities, and aspirations, and execute their chosen strategy successfully. If the markets keep rising, all the better.” said Daniel Kessler, a BCG partner and a co-author of the report.
As the arena for competition in the wealth management sector becomes increasingly tough, opportunities to nurture client relationships will become increasingly important to firms.
“The continuing development and adoption of digital communication will reshape the way products, services, and advice are provided to wealth management clients. Technology can change the dynamics of what constitutes competitive advantage,” said the report. “As client expectations continue to rise, wealth managers must put a higher priority on developing sophisticated digital capabilities and integrating them seamlessly into their current channels and business models.”
With cloud based accounting software for wealth management and other service based industires, there are new opportunities to connect with clients and manage portfolios. Firms that seize the cloud for data analytics and client care will be better positioned to refine their business models with improved digital communication and greater asset gathering capabilities in the future.