Objectway releases joint report with Compeer “The Wealth Management Firm of 2025”
28 February 2020 – Objectway has announced today the publication of the “The Wealth Management Firm of 2025” report.
Objectway, a leader in the software and services for the Digital Wealth & Asset Management sector, has announced today the publication of the “The Wealth Management Firm of 2025” report.
Objectway releases joint report with Compeer “The Wealth Management Firm of 2025”. By 2025, an ideal scenario would be to see more scalable firms, with margins increasing and efficiency gains across their front and back offices.
The research paper was carried out in association with Compeer UK, the renowned provider of benchmarking information and services to the Wealth Management industry, through a series of workshops with over 20 Senior Executives from leading UK wealth and investment managers.
The objective of the initiative was to understand the key issues firms are currently facing, the improvements required to make them more scalable and how they see the industry evolving over the next five years.
For wealth management firms, the cost of Front Office professionals is by far the greatest expense, and has been steadily rising by 5% per year on average. By 2025, there will be a significant change in the typical day of a Front Office professional, who will spend more time building relationships, with a greater use of a portable device to improve their efficency when client onboarding or sharing information any time, anywhere.
Client engagement will largely be driven by the investor, exploiting technology to reduce costs, while preserving the possibility to interact – compliantly.
The CRM that firms have could be much more than a database of client information. If fully integrated with front-end tools and back-offices systems, it can evolve into a true client management system covering onboarding, re-boarding, client reviews.
Back Office costs have increased by more than 17% between 2013 and 2018. There is an overwhelming demand for incremented automation, which will not only have cost reduction benefits, but will also encourage clients to invest with the firm.
Finally, there will be more attention to the cloud, outsourcing and artificial intelligence in the near future. Provided it remains inexpensive and is entirely secure, firms are very open to using the cloud. Artificial Intelligence will be used as a support function, possibly through using machine learning to improve Back Office processes or by assisting the Front Office with investment selection, and should not be thought of as a replacement for humans within the business.
To find out more, download the full report.