OCT 19, 2021

Digital change: the magic solution?

Tariq Khan

Client Development Director

Reading time: 2 min


Digital change in itself is not the magic bullet that will explode into a ready-made future-proof solution for all your business worries.
However, as Objectway discussed recently with industry CEOs, it IS the most effective ENABLER of their business objectives of achieving growth and scale in a tailored way.

Tailored, yet scalable

How can something tailored be scalable and why is a tailored service even needed?
We discussed how client experience is a real differentiator and the reason why clients will stay or leave a firm. Wealth managers vary in their journey towards offering a truly personal client experience, but all believe it to be critical. Some firms are using personas to target prospects and also make suggestions about products and other services to existing clients. The take up for this is very encouraging and firms have seen a significant improvement in client satisfaction as a result. Personalised reports, portfolios, and investments aligned with values are a main priority for clients, and firms realise that this is where digital change can really add value.

The threat of Big Tech

Personalisation at scale can be delivered through technology. Just look at how the big tech firms such as Amazon, Google etc. have made use of client data and segmented it to make personal suggestions based on the preferences they have collected on similar profiles/personas. Indeed according to Capgemini’s World Wealth report, over 60% of wealth management clients are not satisfied with their current touchpoints, such as receiving personalised portfolio recommendations, information on their investments and how they align with their (life) goals etc. They believe big tech can do it better. Most firms want to be able to deliver personalised portfolios, but so far only 4/10 are doing so and/or will offer it in the next 6 months.

The value of an incremental approach

What is stopping firms in delivering personalisation?
Often, the current state of the business, composed of multiple legacy systems and countless manual workarounds, means that firms have to use up their resources in just keeping the lights on. They don’t have the capacity or time to think of other (potentially more efficient) solutions. In addition, the risk of wholesale change to business operations is a major concern and many firms are looking to make incremental changes by adding the best bits of technology together in a modular approach. Outcomes from some of Objectway’s clients has shown this to be a successful approach . Furthermore, many firms aren’t aware of the capabilities that technology will allow. For example, it is possible to construct portfolios based on client preferences and rebalance them in real time. The technology to do this is already tried and trusted, it just needs to be adopted.