February 20, 2024

Engaging the Modern Investor: WealthTech and the Client-Centric Future

Understanding the role of technology providers in driving financial innovation and transforming the wealth management landscape in Switzerland and beyond.

Understanding the role of technology providers in driving financial innovation and transforming the wealth management landscape in Switzerland and beyond.

At the core of any successful wealth management practice lies a commitment to impeccable client service. In an industry where trust and personal relationships have historically driven business, the contemporary challenge is to blend traditional human touchpoints with innovative technology-driven encounters.

Rooted in trust and tradition, Swiss wealth managers have long upheld client-centric values. Yet, in the era of digital consumerism, companies need to break away from the traditional financial advisor archetype and offer an experience that resonates with today’s clientele. According to a “Finances and pension provision” study, conducted by Swiss Life & YouGov, 86% of Swiss people consider the ability to make self-determined financial decisions a fundamental need. The traditional pillars of Swiss wealth management—discretion, stability, and expertise—are not enough to satisfy this new breed of investors who seek a more dynamic and engaging relationship with their wealth managers. They demand advice that is timely, strategies that are personalised, and a level of engagement that is unprecedentedly intricate.

Meeting Client Expectations Head-On

The modern era conceives a client whose investment knowledge is no longer directly proportional to their wealth but is instead shaped by their ability to access an abundance of digital information. This ‘self-determined’ mindset has catalysed new expectations, particularly in the realm of wealth management.

Personalised Investment Advice: The New Norm

The days of static investment strategies are numbered. Modern investors demand advice tailored to their unique financial situation, and the affluent Swiss client is no different. Current financial capabilities, individual risk tolerance, long-term goals and personal preferences are just a few of the complexities that wealth managers need to take into consideration when building and managing personalised investment portfolios.

Real-time Insights for Proactive Decision-Making

Going a step further, investment advice is not only expected to be personalised, but also available on-demand via each client’s preferred digital platforms. Nothing in the investment world remains static for long – markets fluctuate, economies shift and technologies disrupt. Wealth managers need the right tools to monitor and anticipate these changes, providing clients with insights when it matters most, enhancing client engagement, and reinforcing the empowered nature of investing. 

Content Delivery: Embracing Relevance

In this age of information bombardment, salience reigns supreme. Clients have no room for generic updates on their investments. More than just financial advice, they seek relevant educational content that is seamlessly delivered in their app or other preferred channel of consumption, that comes in the most salient format and, more importantly, at the right time in their financial journey.

Technology’s Role in the Evolved Client-Manager Relationship

Wealth management is a personal endeavour rooted in data. It’s a fusion of mathematical precision and personalised relationships. And while the human touch remains the soul of wealth managers, they can leverage technology to elevate their performance and meet the evolving needs of the modern investors.

Access to wider investment horizons

WealthTech’s contribution to the industry goes beyond mere efficiency. It’s democratising investment, allowing wealth managers to provide their clients with access to financial assets, markets and investment opportunities once only available to the most affluent investors.

Data: The Currency of Smart Decisions

In today’s data-driven world, insight is a commodity. Access to external market data, including alternative data sources, enhances the depth of analysis and provides a comprehensive view of market trends. By incorporating technology in wealth management, professionals are free from the constraints of historical market data to leverage real-time and advanced predictive analytics for smarter, sharper decisions.

Seamless delivery enhancing the omni-channel experience

Omni-channel isn’t just a buzzword; it’s the conduit through which managers relay insights and advice. Whether through a mobile app, an email, or a carefully curated online portal, a technology-backed service can create a unified and comprehensive client experience.

Best Practices in Embracing WealthTech Solutions

Of course, transforming the client-manager relationship through technology is not without its challenges – balancing regulatory requirements and safeguarding financial privacy among others. Finding the right balance between human interaction and tech innovation will create the opportunity to showcase expertise, build trust, and exceed expectations. 

That is why it is crucial for wealth managers to find the right technology provider for long-term partnership. To remain competitive in the rapidly changing landscape, they should look for a scalable platform that allows seamless integration of diverse features, that is fully customisable and can easily accommodate future growth. Constant updates of product offerings and upgraded functionalities will facilitate the changes that can not only affect how clients invest, but who they are as more empowered investors.

With all of the above in mind, we built Velexa’s investing-as-a-service solutions to empower wealth managers to digitise customers’ journeys and enable self-directed investing. They can implement needed-only portions of the system by integrating Velexa’s wealth management API, or provide a full-scale front-end and back-end white-labelled investment platform that runs on Velexa’s infrastructure but is fully controlled by the firm.

By taking on the administrative burden of building and running a complex investment solution, Velexa enables wealth managers to focus on what they do best – managing wealth and cultivating personal relationships.

If you want to understand how our solutions can enable your business, schedule a demo

If you want to know more about enhancing client experience, read or download the Wealth Mosaic’s Swiss WealthTech Landscape report