5 Reasons Wealth Managers need a Technology Partner

Posted on September 18, 2019January 9, 2024 by Valuefy

Maybe you are a veteran Wealth Manager, a rookie or somewhere in between. Being in the industry, you must have heard about the disruptive technologies that are changing the sector of Wealth Management.

Well, the news is true as Wealth managers around the world are partnering with Fintech companies to adopt innovative technology solutions. It’s improving the efficiency and productivity of their firms and driving their performance.

Let’s take a look at the 5 major reasons why a Wealth Manager needs a technology partner.

Automation

One of the biggest advantages of technology is automation. Technologies like Big Data, Analytics, and AI are offering real-time data, easy access to information, and faster report generation which cuts down the time taken for decision making.

Automation in Wealth Management allows you to finish time-consuming tasks, like generating portfolio insights and reports, in minutes. It enables smoother operations making your job a lot easier. A ROBO assist platform aids Wealth Management in generating portfolio insights and collecting data in an organized way that also leads to a reduction in costs.

Customer Relationship Management

Customer relationship management is at the heart of a successful Wealth Management firm and it can be enhanced using user-friendly technological solutions that provide both ease and accessibility to the portfolio and analytics.

A technology platform, like Wealthfy, adds convenience to processes like Client Onboarding, Portfolio Construction, Portfolio Monitoring, Reporting, Analytics, and Rebalancing. Providing customers with on-demand analytics is another feature that can prove to be very inviting for a wealth manager.

Data Analytics

Wealth Management is built on data. Analyzing and studying historical and real-time data is a crucial part of making decisions that drive returns. Technology platforms perform these functions quickly while increasing the productivity of Wealth Managers.

Solutions that provides analysis of different classes of Assets in a portfolio helps you decide on the expected returns and risk factors of various assets under one platform. Moreover, these platforms support different styles of portfolios, widening their functionalities.

Multichannel Delivery

Smartphones have helped in garnering a deeper penetration across the market. The company-customer relationship has become more personal, making it easier for customers to reach out to the companies more easily.

This has increased the expectations of the consumers who now want to have multiple delivery channels to stay updated on the go. Effective mobility solutions can make this possible by integrating mobile-based solutions into the legacy systems at the Wealth Management firms allowing your customers to keep track of their portfolio and receive prompt alerts.

Customization

When you customize your platform for your workflows, you make its adoption easier for your customers. It helps you customize advisory and recommendations based on the goals set by the client. This individualistic approach provides a personalized service without taking much time.

Why is the Technical Evolution Welcomed?

The world is changing faster than ever before and this evolution does not intend to cease. Catching up with intelligent technological solutions will only enable you to serve your clients faster and with more precision.

Today’s Wealth Managers are seeking intelligent technological solutions that understand their requirements and aid in bringing down costs, time and an increase in their productivity. Overall help them predict better that in turn help them service their client needs better.

Valuefy is a FinTech company that enables Wealth Managers with technological solutions to ensure the digitalization of their processes and empower them with comprehensive analytics, Portfolio Management solutions, reporting, and relationship management.

The Wealth Management Industry: Outlook 2020

Posted on August 23, 2019November 11, 2022 by Valuefy

As we complete two decades of this century, GenZ has entered their early adulthood and GenY, popularly known as Millennials, are close to being middle-aged. These are the people who grew up with the internet, they have their entire lives around it. And their love for the digital space seems to grow every year.

And these will be the people wealth managers will be serving in the coming years if they aren’t already.

The current industry veterans are from the pre-internet era and their methods are, traditional which has worked fine so far because they have been serving the clients who belonged to the same generation.

But the times are changing and this generation gap needs to be filled if they want to attract, and retain, customers from this generation and the one after. To do that, wealth managers need to adapt to the latest technologies and methods in the wealth management space too.

So, here’s a non-exhaustive list of industry trends that will be seen come 2020.

The Number of FinTech Companies will Rise

FinTech companies with their innovative and technology-oriented approach have been disrupting the industry with solutions like data analytics, predictive analysis through Artificial Intelligence and Machine Learning. There will be a rise in the number of these companies as better, more sophisticated solutions emerge.

Interactions with Clients will Increase, Less in Person

As the industry moves towards a digitalized ecosystem, the number of interactions between the wealth managers and their clients will increase significantly. Only, these would be more in the form of textual or visual interactions rather than in-person meetings. There will still be meetings but far less. The new generation of affluent likes to stay updated with everything all the time which means they would want to have daily updates and reports.

The Need for Customizations will Increase

Technology has enabled customizable solutions for wealth management. FinTech is playing a huge role in making this option available to the wealth managers. With these customizations, every client could be presented with a portfolio or wealth plan tailored to their needs. This would need in-depth profiling of the clients and prospects to propose the most relevant customization to them.

These emerging technological trends would mean that wealth managers would need to find relevant technological partnerships with FinTech companies to prepare themselves for these challenges.

Valuefy is a FinTech company that enables wealth managers with technological solutions to ensure the digitalization of their processes and empower them with comprehensive analytics, Portfolio Management solutions, reporting, and relationship management.

7 Wealth Management Mistakes You Shouldn’t Make

Posted on August 12, 2019November 11, 2022 by Valuefy

Running a wealth management firm is not easy. When it comes to your clients, you are obliged to listen and comply with their wishes but having the required expertise, you understand the market much better than they do. Which is why, sometimes, you have to comply with a preposterous request.

This could possibly be the biggest mistake you could make until you take the right steps to avoid it in the first place. Of course, everybody makes mistakes and your expertise doesn’t make you an exception to that rule.

But if you know what the possible mistakes are, you will be equipped to avoid them. Please note that this list is, in no way, exhaustive.

Not Pushing Clients for their Reasoning

When clients make requests to buy or sell assets voraciously, it’s important that you ask the reasoning behind those thoughts. It is entirely possible that their decision is based on impulse or misunderstood financial standing rather than a sound rationale. They may want to take a risk that they can neither afford nor need, considering their financial goals. As a wealth manager, it is your duty to advise them when they are wrong and heading towards a possible loss.

Working with All Kinds of Clients

One thing that your wealth management firm doesn’t need is a client that doesn’t share your financial philosophy. Niche down to the kind of investors you want to work with based on your experience and your financial philosophies. Taking in clients that are not a good fit for your firm will not only waste your time but also put you through unnecessary conflicts. You would do much better without them.

Overemphasizing on ROI

When you emphasize more on ROI than you should, the expectations of your clients rise unrealistically high. If the client is migrating to your firm from a different one, there’s very little increment on the returns that you can provide. Rather, you must emphasize the security and long term benefits that you can provide them with.

Proceeding without Paperwork

This is a given, you should not proceed without paperwork. When you don’t have all the paperwork in place, you might reach a disagreement with the client at a further stage. If the client decides to walk away from you then, you would waste all the time and effort that you spent working on their portfolio and investment plans.

Neglecting your Own Business

When you are managing wealth for businesses, you sometimes forget that you are running a business too. And just like any other business, you need to grow too. You need to look for opportunities and ways that can help you be more efficient and bring in more clients and eventually, more revenue.

Spending More Time on Mechanical Processes

There are a lot of mechanical processes involved in wealth management and these processes, although important, need not be as time-consuming as they are. For example, spending days on portfolio analytics when tools like ValueAT can do it for you in seconds isn’t wise. You want to automate all the processes that you can so that you can concentrate on decision making and strategizing.

Staying Relevant

As the world moves ahead faster than ever before, businesses need to match the pace if they want to stay relevant to not just today’s clients but tomorrow’s as well. You need to bring in the technology solutions that can provide you with the ease and convenience and reduces your manual effort

Valuefy is a fintech company, empowering wealth management firms with innovative and highly-effective technology solutions that are transforming the way financial institutions approach wealth management.

Is Robo-Advisor a Good Investment Manager?

Posted on July 18, 2019November 7, 2023 by Valuefy

Are you thinking of integrating a robo advisory platform into your wealth management?

Maybe you have been considering a lot about it and want to know if it would be a worthy investment or maybe you have just heard about it and want to know more.

Well, in either of those cases, you have come to the right place.

Robo Advisors, without a doubt, do have a fair share of limitations which is why they are there to assist wealth managers and not replace them. Since a long-term investment plan needs proper planning, it is crucial that a financial advisor is in the equation rather than just a Robo Advisor.

Now, why am I starting with the limitations of the Robo Advisors?

Because I want you to understand that Robo Advisors, with all their benefits, still need you to make sense of the mechanical output that they generate. They still need a pair of human eyes to drive decisions from the data, not just to reduce risks but also to increase the returns of your customers.

With that said, here are a few advantages to integrating a Robo Advisory into your wealth management platform.

You could Onboard more People with Robo Advisors

Now, from a strictly business perspective, you need more clients to scale. However, not all those who can afford to invest are interested in third-party wealth management solutions. Robo Advisors, being more pocket-friendly could be an introduction of sorts to the uninitiated.

Rebalancing Portfolios is easier with Robo Advisors

Rebalancing is the realignment of weightings of a portfolio of assets and involves selling and buying of assets to maintain the desired risk. It can also improve returns. Robo Advisors could help wealth managers in rebalancing the portfolios. They can do it quickly which helps in doing it more often.

Robo Advisors help on Portfolios with Multiple Accounts

Handling investments on hand could be a tedious task and it’s better if it’s handled by a Robo Advisor, especially if there are a lot of accounts on the portfolio.

Robo Advisors are Time Savers

Since Robo advisors are essentially automated, it gives the wealth managers the convenience to focus more on other things like asset allocation, relationship management etc. This helps in making the most of the time available for each client.

With all the advantages stated, let’s go back to our initial question, Is Robo Advisor a good investment manager?

Well, It’s a judgement call.

Robo Advisors are good investment managers only when there’s a wealth manager involved. It’s more like a team where the Robo Advisor takes care of the time-consuming data-driven tasks and the wealth manager takes care of the decision making based on the comprehensive analytics of the data.

Valuefy’s Wealthfy has a Robo Advisory platform that’s helping wealth managers by providing end to end advisory with real-time intelligence. It is embedded with a robust portfolio data engine and is capable of handling multi-asset and multi-currency portfolios with ease. It also has adaptable and flexible white labeling that allows you to interweave it into your existing legacy systems.

With Wealthfy, your clients will experience a simplified user experience with intuitive dashboards and data visualizations that turn complex data into concise insights.

Know more about how Wealthfy will transform your wealth management firm, here.

5 Trends Governing the Future of Wealth Management Industry

Posted on April 30, 2019March 24, 2023 by Valuefy

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

Posted on April 20, 2019November 16, 2022 by Valuefy

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!