DWM technology has evolved considerably in recent years. Those businesses that do not create a strong platform are on the verge of losing client market share and top industry talent. We’ll go through the changes that have been made to the platform over time. This article will also give an overview of what’s changed and how it affects you as a user (and potential customer).
Robo-advisors, which provide low-cost managed ETF asset allocation solutions, are no longer the only type of digital wealth management program. Large-scale digital improvement and integration, driven by COVID19, is now an essential element of a company’s product offering, including managed/advisory accounts and platforms.
Client Onboarding
The key for businesses to successfully onboard clients is a seamless, comprehensive approach for converting prospects into clients. Onboarding covers risks profiling, KYC collection, AML testing, developing investment goals, and establishing an account, and integration of e-Signature. The automation of the onboarding function shortens the time and accuracy in storing information about the customer. Once the profile of the client is completed, the advisor may switch between applications as it still preserves all of the client’s data in context.
Portfolio Construction
The updated portfolio construction tool allows advisors to quickly develop portfolios for their clients based on their risk profile. Advisors may select from various separately managed asset allocation solutions to give the client the Best portfolio for their needs. Within the platform, a digital wealth management program helps in bypassing the client’s risk profile to different applications and integration of different sophisticated data analytics. The advisor can guarantee that the portfolio meets all of a client’s demands and requirements.
Central advisor Dashboard
The advisor desktop is the core component of the ecosystem, allowing advisors to keep track of their entire book of business while also offering the ability to delve deeper into client information. The desktop is also used as a launching point for each of the linked applications.
Risk Monitoring
To understand their clients ‘ portfolios fully, advisors can utilize an integrated risk monitoring tool that includes security-level risk scores, portfolio-level Risk scores, and portfolio concentration risk evaluations. The advisor will also be prompted to take action when their client strays outside of their risk profile or investing goals, giving advisors time and information to assess their next best step. Regulation changes might necessitate additional monitoring of account and advisor activity. The implementation of the best interest regulation, for example, compelled wealth managers to implement stronger portfolio monitoring. Firms that use digital technologies will be better equipped to meet regulatory requirements and minimize risk by leveraging digital wealth management technology.
Client Correspondence
New rules have substantially increased The amount of information that advisors are required to provide their clients. Client reporting software must now give quarterly and annual statements, as well as additional performance exhibits, in order to give clients all the information they need to demonstrate that The firm is acting in their best interests. The reports are often utilized by organizations to communicate with their clients, allowing them to answer any questions they may have about their performance. For example, if a client has a question regarding their performance, the system must be able to create ad hoc reports for any scenario. A fully digitized platform also provides clients with several options for reaching out to and interacting with their advisors, such as interactive client portals that provide clients more access to their advisors through instant messaging, video chatting, and portfolio feedback.
In conclusion, wealth management organizations that want to retain clients should make significant investments in their digital infrastructure and services. The debut of digital wealth management platforms by major industry players such as Morgan Stanley and Bank of America (Merrill Lynch) has raised the bar by providing advisors and clients with a suite of wealth management tools (appointment scheduling, tax services, portfolio construction/selection, client reporting, etc.) through a simple, single-point-of-entry platform. Advisors also get access to proprietary insights generated by more sophisticated data analytics, such as tailored trades for specific clients, check-ins prompted by market risk warning levels, and white-label marketing assets.
