JULY 6, 2020

Digital Wealth Management: Automation and Cost Reduction to Create Value

Georgios Lekkas

Innovation Director

Reading time: 2 min


As in every other sector, digital technology is now impacting all areas of Wealth and Investment Management. The consequences are both positive and negative: on the one hand, the fragility of the system due to the explosion in trade volumes, on the other, the increasing transparency required by the authorities to offer protection to investors.

One of the implications for financial institutions is the need for greater attention to the strategy of creating value: in a world where the speed of change is dizzying, operating as usual is no longer enough. Therefore it is necessary to continuously monitor and develop our strategic approach taking into account technological developments and market changes.


The first detectable key driver in a Digital Wealth Management Company is cost reduction. A correct implementation of digital technologies brings greater efficiency and reduced expenses in each operating area of ​​the institution:

  • Front Office: contact with clients is automated, either through a completely unattended relationship (Robo-advisory) or through a relationship where advisors are assisted by technology (Hybrid advisory). Technology supports investment decisions, client acquisition, contract preparation (Onboarding and digital signature) and relationship management (CRM).
  • Middle Office: automation supports the preparation of investment proposals and periodic reviews, taking into account limits set by suitability, constraints and client’s preferences (Mass Customisation).
  • Back Office: the use of technology can be broad at this stage. Document dematerialization, Robotic Process Automation (RPA), intelligent Business Process Management (iBPM), Artificial Intelligence (AI), blockchain can contribute to automate and integrate operations, administration and accounting in Wealth and Investment Management.


Cutting costs is a defensive strategy, but well implemented technologies also lead to the improvement of the quality of service, reducing errors in practices’ management, speeding up processes and facilitating customer interaction with the financial institution, with a significant gain in effectiveness.

The relationship between technology and Wealth Management in order to create value has other important facets, which we will discuss shortly.

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