Smooth-running procedures and workflow are essential to growing a business, but recent research indicates that too few wealth management firms have effectively systematized their procedures and workflow.
Smooth-running procedures and workflow are essential to growing a business, but recent research indicates that too few wealth management firms have effectively systematized their procedures and workflow.
A 2014 report by WealthBriefing reveals that just 39% of the wealth managers believe their firm’s systems and processes are largely satisfactory on a two-year view, while the majority hold a negative view:
- 25% are looking at wholesale change so that their organization can meet its objectives;
- 14% reported “severe strain” and a need for significant upgrading and development; and
- 21% said their systems and processes are under pressure and will require fairly significant bolt-on developments.
“Strong organization is central to positioning a small business to grow to a medium one – or bigger,” says John Easton, the director of wealth management CRM for Maximizer Services Inc. “Bringing the company’s organizational capabilities to the next level enables you to improve efficiencies, build stronger bonds with clients and attract partners that bring in desired capabilities and share the same aims. The future independent wealth management advisor needs to become a highly organized knowledge manager at the core, able to easily access precise information on a client at the right times in order to establish a stronger rapport and capitalize on opportunities as they present themselves.”
While effectively automating workflow would seem to be absolutely essential in an industry in which precision, compliance and risk are all such critical factors in the day-to-day running of the business, the Key Trends data revealed that most firms have yet to automate their workflow in many crucial areas:
- just 22% have done so for client on-boarding;
- 38% for account opening;
- 21% for client follow-up; and
- 27% for email marketing.
Additionally, research by PwC showed that wealth management firms view “too many manual processes” as by far the leading challenge for operations and technology infrastructure, and while the survey also found that 54% were optimistic that they would achieve predominantly common processes and automation within next two years, without CRM and other technology aimed at systematizing workflow most will find it hard to succeed.
Organizing client knowledge and tracking ongoing interactions in a systematic way not only provides the means to cultivate this greater level of customer intimacy but makes the firm more effective in serving its clients.
“Having common, repeatable, automated, accessible systems and processes in place also improves efficiency and mitigates risk – both in terms of customer satisfaction and compliance,” he says. “For instance, systematizing client on-boarding and the capture of information can reduce risk of inaccuracy and ensure that customers do not become frustrated by repeated requests for the same details.”
It can also ensure that all the correct steps are taken as each client is brought on board and at every stage of development in the relationship – with successive actions noted and logged so that the information can be reviewed or audited at any stage if necessary.
“This ensures that nothing gets lost or overlooked due to human error or simple disorganization,” says Easton, “and that the clients’ wishes are always recorded and available for evaluation.”
A 2014 report by WealthBriefing reveals that just 39% of the wealth managers believe their firm’s systems and processes are largely satisfactory on a two-year view, while the majority hold a negative view:
- 25% are looking at wholesale change so that their organization can meet its objectives;
- 14% reported “severe strain” and a need for significant upgrading and development; and
- 21% said their systems and processes are under pressure and will require fairly significant bolt-on developments.
“Strong organization is central to positioning a small business to grow to a medium one – or bigger,” says John Easton, the director of wealth management CRM for Maximizer Services Inc. “Bringing the company’s organizational capabilities to the next level enables you to improve efficiencies, build stronger bonds with clients and attract partners that bring in desired capabilities and share the same aims. The future independent wealth management advisor needs to become a highly organized knowledge manager at the core, able to easily access precise information on a client at the right times in order to establish a stronger rapport and capitalize on opportunities as they present themselves.”
While effectively automating workflow would seem to be absolutely essential in an industry in which precision, compliance and risk are all such critical factors in the day-to-day running of the business, the Key Trends data revealed that most firms have yet to automate their workflow in many crucial areas:
- just 22% have done so for client on-boarding;
- 38% for account opening;
- 21% for client follow-up; and
- 27% for email marketing.
Additionally, research by PwC showed that wealth management firms view “too many manual processes” as by far the leading challenge for operations and technology infrastructure, and while the survey also found that 54% were optimistic that they would achieve predominantly common processes and automation within next two years, without CRM and other technology aimed at systematizing workflow most will find it hard to succeed.
Organizing client knowledge and tracking ongoing interactions in a systematic way not only provides the means to cultivate this greater level of customer intimacy but makes the firm more effective in serving its clients.
“Having common, repeatable, automated, accessible systems and processes in place also improves efficiency and mitigates risk – both in terms of customer satisfaction and compliance,” he says. “For instance, systematizing client on-boarding and the capture of information can reduce risk of inaccuracy and ensure that customers do not become frustrated by repeated requests for the same details.”
It can also ensure that all the correct steps are taken as each client is brought on board and at every stage of development in the relationship – with successive actions noted and logged so that the information can be reviewed or audited at any stage if necessary.
“This ensures that nothing gets lost or overlooked due to human error or simple disorganization,” says Easton, “and that the clients’ wishes are always recorded and available for evaluation.”
