A digital wealth solution grants the customer straightforward digital access to exclusive and personalised wealth management services as well as to exclusive offerings. The digital provision of such exclusive services furthermore creates new business opportunities such as tapping new target groups that could traditionally not be served for profitability reasons. One example of such a digital solution is Volt®, which is the result of a collaboration between aixigo and Vontobel.
Traditional wealth management consists of many manual processes. The resources required limit both the time and attention an adviser can dedicate to a single customer or customer portfolio, as well as the overall number of customers a single adviser can serve. By contrast, in digital wealth management, time and cost intensive manual processes are drastically reduced. This saves the adviser time and effort. As a result, the adviser gains new capacities and can fully refocus on his or her core competence – providing high-quality wealth management and assisting the customer in increasing his wealth. Complementing this, the digital support in the areas of monitoring, alerting and rebalancing leads to an additional improvement in service quality and moreover enables the wealth manager to monitor and manage a higher number of portfolios. A digital solution therefore does not replace the adviser, but rather empowers him to fully concentrate on providing high-quality wealth management.
The aforementioned high workload of traditional wealth management also limits the scalability of the business model. Manual processes constrain the number of customers a single adviser can serve. As a result, only a handpicked clientele currently enjoys this type of exclusive services and the significantly larger customer group, the affluent customers, has so far been precluded. This has a significant impact on the profitability of the business.
However, by digitising wealth management to the greatest possible extent, the adviser's manual tasks are reduced to a minimum, regulatory requirements are automatically complied with and security is ensured overall. Thanks to the reduction of effort, the adviser benefits from a markedly increased process efficiency and free capacities for his core business. This enables him to manage a higher number of mandates and assets in the same working time and hence ensures profitability, even at lower investment volumes. Through digitisation and the reduction of effort, exclusive wealth management services now become scalable and accessible to a new, less wealthy target group.
Finally, digital wealth management also facilitates transparency vis-à-vis the customer. Transparency can be created, for example, by integrating a timeline into the digital services or by providing high-quality and up-to-date reports digitally.
As already mentioned, a central function for the creation of transparency is the timeline. Similar to a social media feed, the customer is informed about news on current investments, industry news or any changes to their own portfolio. The timeline thus serves as a central communication medium for the customer, providing him – within the time frame of a cup of coffee – with a transparent and comprehensible overview of his portfolio's developments and the wealth manager's recommendations and actions. Thus, the high quality customer service is not only made transparent, but also put in the forefront.
Overall, the technological assistance enables an exclusive offering that turns into a positive service experience for the customer and into a gateway to new income streams for the provider. Efficiency and scalability are assured, allowing new customer segments to be reached. The perceived quality and transparency of this service furthermore increase the customer's willingness to pay and create customer loyalty. The use of the digital service offering becomes a regular part in his or her daily life.
Compelling arguments to take the leap into the digital realm!