Increasing profitability for wealth management firms, as well as clients, will require a thorough investigation of the practices and technologies used. From the business processes to the systems integration and support services, all components of a wealth management approach need to be designed to address crucial challenges. Through the right technologies and the following wealth management best practices, profitability margins can be increased.

5 Wealth Management Best Practices
Wealth management firms should leverage the following four best practices to combat the all too common challenges of cost ineffective solutions, reduced profitability, and a one-size-fits all mentality.

  • The Proper Aggregation And Rationalization Of Data. — All of the firm, product(s), and client data needs to be properly aggregated. It is essential that individual and repetitive data silos are broken down, so that the gathered customer data can be effectively analyzed. Through the creation of a master data management structure, wealth management firms will be able to leverage gathered intelligence to effectively provide quality customer support, increased profitability margins, and improved interactions.
  • Implementation Of A Service-Oriented Architecture (SOA). — Quality and integrity are contributing factors to properly gathered data. A SOA wealth management platform should be used to define business services, while simultaneously ensuring that data is properly aggregated and displayed in meaningful formats.
  • Working With A Trusted Advisor. — If profitability is to be achieved, then quality advice must be gathered. Assessing the quality of advisors stems from the use of proper metrics and reporting processes. Innovative collaboration tools can and should be leveraged to successfully answer customer questions regarding a wide variety of topics, including: evaluating investment alternatives, the wealth building cycle, and planning for various wealth events.
  • Leveraging An Integrated CRM. — Client profiling, converting investment proposals into investment strategy execution, on-boarding, and other front office processes can all be expedited with the use of a contextualized CRM system. The optimal CRM will be able to generate compelling and compliant proposals, conduct basic analysis, and accurately capture client or prospect information. Finally, the key to a good CRM is its ability to enable proactive communication that leads to relevant movements within a client’s portfolio.
  • Managing and Securing Your Client Documents — Managing and securing your client documentation is every wealth management organizations fiduciary responsibility. Metal filing cabinet and network shares are not enough. In order to keep up with the competition, organizations must invest in a solution that that provides secure audited access with file level security overlays capabilities. Not only does this allow a wealth management organization to ensure secure client data but will also allow the office to run more efficiently by having instant access to client files when needed.

Achieving Profitability With The Right Approach
Increased profitability can be achieved with the right technology choices. Implementing the above best practice approaches, as well as the right service model, can result in an intuitive wealth management platform that benefits both client and advisor. In conclusion, an affordable and flexible technology solution will help wealth management firms achieve the user-interface that they desire, while simultaneously keeping costs low, properly gathering relevant data, and effectively self-directing wealth management activities to achieve higher profitability levels.