The Science and Art of Choosing the Right Investment Management Solution

Choosing an investment management solution is a rather difficult task, especially when there are many options to choose from. You want to make the most of it, making it easier for your investment managers to be more productive and efficient. Something that will also provide your clients with easy to understand insights to help them with their decision making.

From client acquisition and onboarding to compliance and oversight, there are processes that can be easily digitalized and help save time. When your investment managers save time in gaining data analytics and making detailed reports, they can work on putting those reports to good use and help make your clients make the best choices.

But choosing the right investment solution is just like choosing investment options. It is as much an art as it is science, meaning it is just as subjective as it is objective. There are aspects of an investment management solution, like analytics and reports, that will work for all investment managers but there are processes that might not work in a “template” approach and might need customizations for different fund managers and sometimes, for different clients.

All these considerations seem to make choosing an investment management solution more complicated than it is but when we break it down to the basics, it’s quite simple actually. WealthFy makes it easier for you to see a clearer picture and make the right choice when deciding on a solution. It will make your job easier and your client’s decision making faster.

So, here’s a breakdown of the reasons why WealthFy may just be the best investment management solution for you:

Interactive Client Portals

Smart client portals help wealth managers present a holistic view to the rewired investor, on demand. It is built to connect with complex legacy systems and is powered by an optimized data layer. Complex Private Banking portfolio is made interactive and personalized to make wealth management with tailored goal vs investment profiling easier.

Digital Intelligence

Smart Advisory Algorithms empower your sales force with a seamless workflow across mandates, portfolio reviews, portfolio construction, and transactions. This paperless advisory workflow is a close replica of a CIO’s view in each client interaction.

Precise Portfolio Review

Portfolio reviews no longer need to take weeks and can be performed within seconds. WealthFy creates portfolio insights for investment advisors that are delivered through powerful dashboards. And the whole process can be customized and automated as per your client’s needs, creating a truly digital, millennial experience.

Advisor-Client Solution

Today’s investor needs an investment management solution that is made for tomorrow but also adheres to the constantly updating legacy regulations. WealthFY’s Advisor-Client solution arms every Wealth Manager with compliance and smart insights to make the most of the investment.

Cloud-based Solution

Having a cloud-based solution not only increases the efficiency of your solution but also saves costs as there is no hardware involved. And it pretty much takes care of itself with automatic updates to keep the software relevant. These solutions are also available round the clock and have a flexible capacity on storage.

Do you want to take an early lead at being the most preferred investment management firm in the digital age? Contact Valuefy today!

Valuefy made it to the WealthTech100. Have you Heard it yet?

Valuefy is pleased to announce that we are now recognized worldwide as a WealthTech100 company. We are among the few companies from Asia to be featured in the list of the 100 most influential innovators in the FinTech Industry.

The list was put together by FinTech Global’s panel of industry experts and analysts. They selected the top 100 from an assemblage of 1000 participating companies based on the significance of the problem being solved by the company, the growth of the company, innovation in technology and the potential efficiency increase.

All these companies bring smart solutions for WealthTech landscape spanning in areas of client management, investment planning, portfolio management, Digital Advice, Risk and Compliance. We have brought in solutions like WealthFy and ValueAT to help people manage Digital Wealth better. Valuefy is Serving marquee clients by empowering them with Investment Analytics, Digital Wealth and High touch Advisory Solutions.

Why This List?

This list is important for many people. Many FinTech companies cater to different stages of Wealth Management or Investment management Value chain. It will help the revered investors and senior level executives in choosing the right FinTech platform for their specific requirements.

We want to enable them with better Advisory & Client engagement by addressing the core challenges and providing effective solutions for the same.

Valuefy solutions reflect on our Vision of “bettering the way, the world invest” by delivering multiple benefits across the value chain of investing. From simplification, Analytics, to use of Artificial intelligence, our core is to make Wealth Management “better” in general.

Where We go From Here

At Valuefy, we believe in moving forward. We have always been huge fans of making progress where it’s due and now that we have reached an important milestone, we are aiming at another.

We are honored to be a part of this esteemed group of companies and look forward to creating more innovative solutions to WealthTech’s biggest problems. For us, the best is yet to come, what about you?

5 Trends Governing the Future of Wealth Management Industry

As economies around the world take twists and turns amidst political, geographical, technological, and social transformations, one thing is for sure – Change. Yes, the inevitable that surreptitiously unmasks itself even before you realise its existence.

Considering evolution as the underlying factor for our growth, it would only be fair to consider these up and coming trends, shaping the workstyle of finance and wealth management industry, are here to make matter more interesting than we projected.

The Competition

Needless to say, the competition is now more intensified than ever. Retail banks and financial institutions looking for new growth opportunities are tapping new technology and business models; however, amidst prevailing financial crisis, more firms and more advisors have entered into a fray for the same segment of clients. Adding to the competition is entry of nonfinancial players in the market, which saw a surge of 20% until last year. With business giant like Google planning to make way into the wealth management arena, it’s definitely going to be more cut-throat than ever.

Changing Demography

Close to $58.1 trillion is expected to move from one adult population to the next, over a period of 55 years, from 2007-2061. This huge transition in process is certainly causing paradigm shifts in the wealth management landscape. Assets will change both owners and advisors, hence, bringing about a massive change in existing client/advisor relationships.

As the WM workforce will retire, so will their existing set of clients. Millennials taking over their preceding generation of Baby Boomers will change the demographic equation quite significantly.

Further, with more women taking control of assets by virtue of financial and social independence, will add to the new demography.

New Expectations

Yes, there’s a new wave of expectations on the table. Thanks to new-age millennial thinking that believes in and demands transparency and control over their investment (both long term and short term). Such clarity in expectations is paving way for goal-based financial advice. It’s time, investment advisors shift focus from generic commoditized advising to more holistic consultation. This will reap sustainable benefit for both client and wealth managers. 90% Baby Boomers, 91% Gen X, and 93% Millennials consider fee structure as one of the determining factors in choosing a financial advisor.

This new breed of investors is vocal and non-hesitant about putting forth their desire for goal-based advice. Unfortunately, loyalty is not the only trait that will help the industry sail through.

The Digital Potential

The world is going gaga over digitalization, and there cannot be more emphasis on the need to incorporate the growing prevalence. Enhancing agility and making wealth management practices more efficient are few more reasons the industry should tap the technology to its advantage. 76% of investors agree that digital technology will not reduce the quality of advisor relationship.

It is therefore imperative that Incumbent wealth management firms build upon new technology for inculcating value-based collaborative relationships.

Remodelling Around Regulations

With risk regulations more stringent than ever, the wealth management industry needs to be more alert than ever. After all, the very foundation of this industry is based on trust. One intangible factor that can change the course of any business. Therefore, restructuring key areas of businesses to comply with regulatory norms will be a priority task for sure.

The New Clientele: How Women and Millenials are shaping the future of the Wealth Management Industry

Millennials and their approach towards finance

About 40 percent of the global adult population is under 35 years of age and this number is most likely to be doubled by 2020. Millennials also known as the Generation Y have a keen sense of understanding of how the market runs, have deep entrepreneurial ambitions and a have a better understanding of investment when compared to the Baby Boomers.

Millennials have a short term and quick returns oriented approach when it comes to wealth management and planning, and this reflects in their interest in investing in emerging technologies and markets like Blockchain and Cryptocurrency.

According to a recent study, millennials believe in a cashless economy of which 33% do not believe in the need for the existence of a bank. The savings models, however, are still largely cash-based with more than 52% relying on cash-based savings.

Rise of a self-taught and data-centric user base:

Millennials are the future wealth management clientele and Financial organizations are now finding ways to cater to this intelligent, inquisitive, and self-service based user groups by relying on technology-based platforms to offer its users a wealth management applications that inspire transparency and trust. Technology platforms also allow full access of the functionalities to its users such as portfolio monitoring, analytics, and recommendation.

Wealth management companies are now adopting an analytical approach to cater to this generation of users by providing insights that are actionable, resourceful, and are available at their disposal with increased convenience.

Millennials as a generation strongly consider the social presence of any company to create a persona before investing in them mentally or economically.

Financial institutions in the wealth management space must fine-tune their current legacy systems to morph into a system that is in sync with the current consumer base as delay will only increase the cost of conversion or impact the company by losing its clients to early adopters.

And this is where Valuefy’s award winning wealth tech solutions are helping empower private banks, wealth management companies and family offices to serve their investors better!

The New Normal in Wealth Management

The COVID-19 pandemic has had a profound impact on the wealth management industry. Many of the trends that were already underway, such as the rise of digitalization and the shift to personalized advice, have been accelerated.

In the new normal, wealth managers will need to focus on the following key areas:

  • Digitalization: Wealth managers need to embrace digital technology to improve the client experience and operational efficiency. This includes offering online and mobile access to accounts, as well as using artificial intelligence (AI) and machine learning to automate tasks and provide personalized insights.
  • Personalized advice: Wealth managers need to shift from a product-centric approach to a client-centric approach. This means providing clients with personalized advice that is tailored to their individual needs and goals.
  • Risk management: Wealth managers need to help clients manage their risks in a volatile and uncertain environment. This includes developing risk management strategies that are aligned with each client’s individual risk tolerance.

In addition to these key areas, wealth managers also need to be aware of the following trends:

  • The rise of the mass affluent: The mass affluent segment is growing rapidly, and wealth managers need to adapt their offerings to meet the needs of these clients.
  • The increasing diversity of clients: Wealth managers need to be prepared to serve a more diverse range of clients, including millennials, women, and immigrants.
  • The growing importance of ESG: Environmental, social, and governance (ESG) investing is becoming increasingly important to clients. Wealth managers need to be able to offer ESG investment solutions and help clients understand the impact of their investments.

How Valuefy can help wealth managers adapt to the new normal

Valuefy is a wealthtech platform that can help wealth managers adapt to the new normal in a number of ways. Valuefy’s platform can help wealth managers to:

  • Digitalize their operations: Valuefy offers a variety of digital tools and solutions that can help wealth managers to automate tasks, improve the client experience, and gain insights from their data.
  • Provide personalized advice: Valuefy’s platform can help wealth managers to develop personalized financial plans and investment portfolios for their clients. Valuefy also offers insights and recommendations that can help wealth managers to provide better advice to their clients.
  • Manage risk: Valuefy’s platform can help wealth managers to develop and implement risk management strategies that are aligned with each client’s individual risk tolerance.

Valuefy’s customers include wealth managers, asset managers, and private banks. To learn more about how Valuefy can help you adapt to the new normal in wealth management.

Hybrid Advisory Model: The Future of Wealth Management lies in Man-Machine Collaboration

The thought of Robots and Artificial intelligence eventually replacing us and taking our jobs is a frightful one for all of us. However, beyond this fearmongering, there’s the simple truth that Artificial Intelligence is definitely much quicker than human beings at some tasks such as complex computations while humans are better at intuition.

The Wealth Management industry is currently undergoing a sea change as it moves from traditional methods to adopt the final frontier of technology adoption including AI, Big Data, Analytics, and Robo-advisory. However, the human element of customer service and ‘gut instinct’ can never be replaced and Wealth Management firms are seeing the rise of a new model, namely the ‘Hybrid advisory’ model.

What is the Hybrid Advisory Model?

Hybrid Advisory takes what’s best about both the worlds (human and robot) and puts them together in one basket. Machines being inherently quicker than human beings at computational tasks, wealth management firms are using wealth management platforms and robo-advisors to comb through terabytes of data and convert it into actionable intelligence and insights. This tempers the tendency of advisors to make purely instinct based investment decisions and helps them leverage the power of data to derisk their decision process.

The increased efficiency of the model helps a single wealth manager optimize his daily activities and automate operational tasks by around 60%. This helps make Wealth Management more accessible, flexible and cost-effective and reduces the human effort associated with each customer improving the scalability of your wealth management practice.

What are the different kinds of Hybrid models being adopted?

There are three kinds of Hybrid advisory models that banks and wealth management practices are adopting based on client demographics, portfolio types and specific requirements and demands of the client base.

Digital advisory model:

The Digital advisory model offers the customer simplified financial services to customers as a DIY digital service. This makes investing more economical for mid-size or smaller investors as the commissions, as well as the minimum asset requirement for investing, are quite low.

In this model, the human advisor is involved only in the initial phase of guiding and setting up the portfolio, and the investment goals after which the digital platform or robo-advisor takes control. Digital advisory is usually based on passive investment instruments such as ETFs or index funds. The major benefit of a digital advisory model is that the customers have the flexibility to move towards the ‘High touch’ model with more human advisor involvement as their assets grow and management needs become more complex.

Scalable advisory model:

The scalable advisory model enables the robo-advisor and the human advisor to serve “mass affluent” clients economically and with efficiency. The scalable advisory model generally employes the robo-advisor purely for insights and to drive transparency while the final investing decisions are actively made by the human advisors.

In the scalable advisory model, the human advisor creates the financial plan, configures the roboadvisory, helps in investment decisions and manages complex financial instruments. This gives the client a balance between digital services as well as access to a human advisor for major investing decisions. The scalable advisor model is generally preferred by tech-savvy investors who value the skillset of human advisors as well the transparency and monitoring capabilities afforded by robo-advisors and wealth management platforms.

High-touch advisory model:

The ‘High touch’ model is made specifically for HNI clients with complex financial needs and larger assets under management with a tailored experience. In this model, the financial advisors usually take complete control of the Wealth Management platform and the clients get access to a client app where they can monitor their portfolio at all times.

Advisors use the platform to optimize and automate operations so that they can invest more time in exceptional client servicing and client relationship meetings. In this model, the data and analytics insights provided by Robo-advisors are used to power insightful conversations with HNI clients who are starved for time as well as to prepare detailed portfolio reports. Human wealth managers in the ‘High touch’ model offer full-scale advisory services such as succession planning, real estate planning, retirement planning, advice on annuities, alternative investments and more.

The Indian Wealth Management Landscape: Moving towards ‘High touch’ experiences

Hybrid advisory models offer both investors and wealth management companies several benefits such as the lowered costs of advice, high scalability in service models, data-driven financial advise as well as the ability to monitor portfolios 24X7.

In the face of Indian HNIs picking up on global cues and demanding world-class technology from their wealth management firms, Indian banks are turning to Fintech partners for a solution. Valuefy, India’s pioneer investment technology company is leading the digitization charge for market leaders such as Kotak AMC, Reuters, WGC and Aditya Birla Group and helping them deliver the coveted high touch experience to their HNI clients.

‘Mass Affluent’ Asians, the prime force shaping the Wealth Management Industry

2018 report by data firm Wealth X that analyzes the state of Ultra Wealthy Individuals ( $30m or more in net worth) brought to light that Asia posted the greatest jump in the number of Ultra HNIs at 18.5% while their net wealth grew by 26.7% almost twice the rate seen in the United States.

This rise in Asian affluence has captured the popular imagination, the chart-topping success of the Blockbuster Jon Chu film ‘Crazy Rich Asians’ depicting the ultra luxurious lives of Asian billionaire heirs and heiresses is a prime example.

However, amidst the hullabaloo raised by the Ultra HNI& HNI tycoons, a growing segment of ‘Mass Affluent’ Asians with comparatively modest incomes of US$100,000 to US$1,000,000 are the ones prompting a gold rush in the Wealth Management Industry.

What’s the market opportunity?

Asia holds the second largest concentration of private wealth in the world with $47.3 Trillion in private wealth compared to North America’s $50.8 Trillion. Over the next 5 years, this is projected to hit $70.7 Trillion speeding past North America to claim the number one spot.

What are the challenges?

Despite the growing wealth of the region, the Wealth Management industry has captured only 20% of the market. This is because traditional Wealth Management firms have focussed on the growth of Ultra HNIs at the cost of the ‘Mass Affluent’ the fastest growing wealth segment in Asia at a CAGR of 9.8%.

However, the conventional approaches used in Western markets are failing in Asia due to the unique Asian cultural milieu of tech savviness, inherent distrust of external advice and an unwillingness to pay for financial advice.

Hence a tailored strategy needs to be developed keeping the millennial ‘Mass Affluent’ Asian in mind to tackle this market effectively.

Wealth Management platforms can help capture this segment

The Asian Mass Affluent who have mostly made their money in the tech and finance industries are very tech savvy. Catering to them requires a tech-enabled high touch approach that blends the best of human talent with cutting edge technology. Using new age Wealth Management platforms and leveraging Artificial Intelligence and Robo advisory driven insights can help differentiate your wealth management practice in the eyes of the customer.

How can Wealth Management platforms drive value for tech-savvy clients?

  • Empower customers with 24×7 monitoring:

Clients who are tech savvy prefer to be on top of their portfolio and be more involved in active management. Delivering a custom app experience that allows them to monitor their portfolio and reach out to wealth managers instantly can help customers feel more empowered. Wealth Management platforms with Client and Advisor apps help both stakeholders stay on the same page at all time.

  • Drive trust with Analytics, and AI driven advisory:

The Asian cultural milieu values empirical evidence and scientific approaches especially towards investing. Wealth Management platforms that can back up investment recommendations with detailed analytics and AI driven insights will help create trust towards the Wealth Manager and temper tendencies to make erratic and irresponsible investing decisions.

  • Offer premium customer service:

Wealth platforms can help managers automate up to 60% of their daily operational tasks including Client on-boarding, Portfolio construction, Portfolio monitoring, and Rebalancing. This gives Wealth Managers the time to reach out, build relationships and maintain constant contact with demanding customers.

  • High value for money:

The Mass Affluent tend to be more frugal with their investments as they have mostly self-made fortunes. They tend to look for value when shopping for luxury goods or for services. Wealth Platforms can help bring down costs of serving each client and this benefit can partially be passed on to the customer to give them better value for their money.

A Roadmap to Digitize your Wealth Management Practice

Traditional Wealth Management firms can vastly benefit from partnering with new Fintech kids on the block to digitize their offerings. A well-implemented partnership can bring with it a host of benefits including uplift in the bottom line, saved time, saved costs and an increase in customer penetration.

As the wealth management landscape is undergoing a sea change, with people choosing to go the DIY route through Robo Advisors and Passive investing, it has become imperative for traditional firms to make the switch to digital. If you’re thinking of digitizing your practice here’s a quick 5 step guide to consider before placing your bets.

Clearly establish the goals of digitization:

What is the problem statement and what exactly are you looking to acheive. Are you looking to save time spent on operational tasks? Are you looking to increase efficiency and client loads per relationship manager? Are you looking to reduce costs? Are you looking at improving customer satisfaction with digital offerings? Benchmarking this data before and after the exercise will help you measure your degree of success.

Consider the ripple effects on people and processes:

For your digitization strategy to be successful, it must consider the impact of transformation on company culture and on people and process. Are your wealth managers ready to adopt technology? Are they willing to take time to unlearn existing practices? It’s essential that transformation doesn’t result in parallel processes due to a lack of trust or usability of the adopted tools.

Assess and prioritize:

Don’t bite off more than you can chew, prioritize your goals and identify short, medium, and long term milestones. Eg a 5% improvement in manager productivity in the first 6 months or a 3% reduction in costs in the first month. Proper prioritization by key stakeholders will trickle down to the rest of the team and reduce apprehensions about the transformation.

Develop a clear timeline:

Building up your digital capabilities isn’t a one-time thing. Allocating the resources, getting the organization on board, outlining the investments is a continuous process. It helps to have a clear horizon of when each step needs to be taken. Develop a high-level plan and define the key architecture of changes to be implemented. Some key questions should be answered in consensus to avoid miscommunications later on. Should you partner with a Fintech or develop an in-house solution?  Should the focus be on the web or on the app? Should there be a one time launch or an iterative process? Should you buy a readymade solution or develop a customized one?

Make the move:

Once you’ve made the decision to digitize your practice, developed a consensus and defined your roadmap, it is essential to act to get the ball rolling. Large organizations especially those in traditional sectors such as Wealth Management and Banking can be notoriously prone to inertia and resistant to change. Once you have your key stakeholders on board, make your first step soon to avoid digitization plans being shifted to the next quarter to accommodate immediate concerns and short term goals.

Fuelled by Data – Wealth Management’s Tech Transformation

Technologies like Big data and Artificial Intelligence are being adopted to create a high touch ecosystem in the Wealth Management space. Forward-looking wealth management firms are turning to Robo advisors to help churn massive amounts of unstructured data into recommendations, insights, and decisions to aid their Wealth Management Professionals.

Here are some of the key aspects being revolutionized by Artificial Intelligence.

  • Customer service

Wealth Management firms are slowly catching up to the advances in Artificial Intelligence and Big data as they become vital differentiators in the battle to provide exceptional value and customer service. Wealth Management platforms are now capable of automating Customer KYC, Multi-asset integration, Account aggregation and

Performance attribution to give the customer all the information they need in one place. The simplified user experience of these platforms is freeing up advisor time to focus on investment strategy and giving an engaging customer experience to clients.

  • Decision making and goal setting

Robo-advisors can now recommend tailor-made portfolio advice based on sophisticated portfolio intelligence and analytics. These data-driven insights help Wealth Managers chart the right course and temper instinct driven investing.

  • Accounting precision

Wealth manager can leverage Robo Advisors to get rid of tedious and repetitive tasks. The ability of Robo-advisors to crunch terabytes of portfolio data helps improve the reliability of predictions and helps minimize human error.

  • Omnichannel monitoring

Wealth Management platforms of today are slowly beginning to cater to mobile first audiences. Major functionalities such as Portfolio construction, Monitoring, Reporting, Analytics, and Rebalancing can now easily be accessed on the go.

Looking to transform your Wealth Management practice? – Get in touch

AI is helping thinly spread Wealth Managers save up to 20% of their time

The Human Wealth Manager is a very precious resource, and often extremely expensive,  with median salaries of well over 100K (Census data collected by WSJ). In such a scenario private wealth management firms often tend to overwork and spread thin their accounts, in some firms, it was found that Wealth managers were juggling between 200 to 500 portfolios in a work week. This led to many wealth managers working well over 80 – 100 hour work weeks.

However pulling such long work hours often mean that Wealth Managers often become less efficient and often develop depression, anxiety, immune disorders that affect their quality of life, efficiency, and their decision-making capabilities.

How can Artificial Intelligence make a difference?

AI is helping Wealth Management firms optimize their Wealth Management process and reduce the strain on Human Wealth managers by automating a lot of the research, onboarding, goal setting, and operations that goes into wealth management.

Leading Investment technology firms such as Valuefy are creating sophisticated Wealth Management platforms and Robo advisory services that crunch through Terabytes of data in seconds compared to hours of manual research. Big data analysis is helping Wealth Management professionals create better models and strategies for their firms by factoring in more strategies and variables and thereby tempering the tendency to make biased decisions.

These platforms are also helping Human Managers organize their portfolio lifecycle better by leveraging real time insights. This helps Wealth Managers at large firms managing 200+ portfolios a day dedicate their attention to macro and micro trends and take corrective action or rebalancing if necessary.

Using these big data platforms can also help Wealth Managers have data driven and nuanced conversations with their clients. It can help clients feel at ease and assuaged to have hard data backing up their investment strategies. Overall it helps Wealth Managers to be proactive and respond to trends quickly, leaving customers feeling more valued.

The major benefit, however, is that it helps Wealth Managers free up their time by almost 20%. This translates to almost a whole day a week, which can be better utilised to reevaluate strategies, cement relationships, prospecting and more rather than day to day portfolio management operations.

To learn more about how AI can help your firm reach peak efficiency, set up a free consultation today – Set up a Demo

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