Digital wealth and asset management software business Objectway has published a research paper that found wealth managers saw new client acquisition as the most important use of digital services.
The research paper, ‘Setting the Digital Agenda for the Next Normal’ was commissioned in association with Compeer.
The findings were based upon a series of face-to-face interviews, investigating the main themes that will be setting the digital agenda, and consequently how wealth managers’ IT spending will be gaining momentum from digital change achieved during the pandemic.
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Closely after the acquisition of new clients, interviewees marked out the importance of providing existing services in a more cost-efficient and scalable way.
In 2020, Objectway noted that total IT costs have risen by 15.1% during the pandemic, almost double the previous year (7.8%).
The major concern firms highlighted was the challenge of building the same level of relationship and trust with clients digitally as in person.
Despite this concern, the data showed that annual client inflows for wealth managers were up to £123bn in 2020, from £112bn in 2019.
The paper also found that the main drivers for firms’ environmental social and governance (ESG) strategies related to keeping up with upcoming regulatory requirements, responding to client demand and the opportunity to attract new clients.
All those interviewed saw ESG as a commercial opportunity, but one of the major hurdles was said to be how to demonstrate their ESG culture to clients.