Great Expectations and Unintended Consequences

Learning the lessons of the past

Brannan and Levi Strauss were both store owners before the goldrush, their success came by applying a lifetime of store-owning experience at scale, this is a great lesson for established wealth managers looking at why or how to digitise.

It is estimated that ten years' worth of digital adoption has occurred in the last two years, existing asset-rich HNW clients have already embraced some digitisation and, because of that, existing clients and prospective clients similar to them will be the most profitable seam to mine.

Done correctly, and with a proper plan, digitisation will create efficiencies for the wealth manager, will augment the high touch service the client receives and will increase their loyalty and the potential of them making referrals. By focusing on existing, digitally-keen clients first, firms can test, improve and refine their approach before committing to a fuller roll out.

Digital clients of all ages are becoming increasingly discerning with experience, so now digitisation has begun, it is paramount to continually reinvest in digital technology. In the same way that a mining company continually evolves its process in order to create operating efficiency in the mines they are active in, digital technology needs to continually advance in all aspects, from digital delivery channels through user experiences, and into the core operating model.

While it may seem like an excuse from a technology firm to spend more on tech and marketing, the digitisation of wealth management has the potential to be an inflection point in this industry. If a wealth manager commits to continually evolving its digital capabilities it won't be long before the digital experience of existing clients is revolutionised and historically unprofitable clients become a rich discovery. As Mark Twain, a reporter for the San Francisco Morning Call during the gold rush, wrote in 'the American Claimant' - There is gold in them thar hills!!