The majority of wealth managers (70%) have expressed dissatisfaction or indifference towards their existing technology systems, according to recent research conducted by Avaloq.
According to the findings, a significant portion of wealth managers, 45%, perceive their current technology systems as outdated, while only 31% are satisfied with their systems’ modernity.
Moreover, just 29% believe that their technology aligns with their specific needs, highlighting a gap between existing solutions and user requirements.
The study, encompassed insights from 200 wealth managers across Europe and Asia, and included contributions from established firms like BlackRock, as it looked to identify the key challenges facing wealth managers today.
Despite these sentiments, there’s a growing recognition of technology’s potential to deliver substantial benefits, particularly in areas such as automation of client onboarding and advanced data analytics.
However, the complexity and usability issues associated with existing systems hinder wealth managers from fully leveraging these capabilities.
One of the key challenges highlighted by the research is the reluctance among wealth managers to integrate technology into client meetings due to concerns about user interface optimisation and overall complexity.
While 54% of wealth managers globally use investment advisory technology in client meetings, there’s a significant desire among the remaining 46% to adopt such tools, underscoring a clear opportunity for enhancing system usability and functionality.
Additionally, the study underscores broader challenges in technology adoption, with issues such as unintuitive navigation and the need to manage multiple systems impeding operational efficiency.
Avaloq’s findings reveal that nearly a fifth of wealth managers currently rely on over ten technology systems, indicating a pressing need for streamlining and consolidating technology ecosystems.
Despite the existing challenges, there’s a palpable demand among wealth managers for technology enhancements that can streamline their day-to-day operations and improve client service.
Features such as enhanced data visualisation, automated regulatory checks, and portfolio monitoring are identified as top priorities, reflecting a growing appetite for advanced technological solutions in the wealth management sector.
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