The Covid-19 crisis has proven to be an accelerator of digitization already underway in many companies. In particular, it put pressure on financial services.
In an increasingly competitive context, where digital becomes an essential value, the wealth management world must therefore strengthen its digitization processes and focus, more than ever, on the customer experience.
While the impact of the health crisis has forced wealth management professionals to show resilience, they must now draw conclusions from this crisis and manage the fallout on their business.
Indeed, the crisis has highlighted many weaknesses among wealth management professionals. Example: Security problems, lack of follow-up, difficulties in accessing files (digital or paper)…
By forcing wealth management professionals to work remotely, the pandemic has accelerated a demand for digitization that was already boiling before. This is therefore an opportunity to improve existing systems, but also, if necessary, to establish a new mode of operation. What if digital tools and processes could be used to improve the customer experience?
The need to put the customer experience back at the center of the relationship
It’s a fact: at the height of the health crisis, the companies that did well were the ones that were able to adapt as quickly and efficiently as possible. According to a study carried out by McKinsey, 72% of companies that used new technologies during the crisis reported a very good management of the same in their company, against 33% of companies that did not use these technologies.
In fact, if the customer experience was already an essential element in the success of companies before the crisis hit, it is now crucial, even a priority. This is the reason why many companies – and in particular the world of private wealth management – are now committed to improving the experience of their customers, with the aim of differentiating themselves from the competition and adapting to the post-crisis context. Reinforcement of complaints monitoring programs, increased investment in CRM, development of digital tools, simplification of customer journeys, development of an omnichannel strategy that also privileges security… demands and needs, especially in terms of digital technology.
The Covid-19 crisis has indeed shown the importance of the proper functioning of digital platforms. The digitization of the customer experience thus consists of simplifying the resolution of orders and access to information for the customer and employees. This is particularly important in a context where remote work is becoming pervasive and where client advisors do not always have access to the platforms and databases they use in their usual work environment.
Strengthen customer knowledge and relationships thanks to data
Thanks to informative data, it is now possible to personalize the customer relationship. This makes it possible to create a stronger and more lasting connection with potential customers and clients, namely through the provision of communications and services based on informational data (name, surname, date of birth, etc.).
This personalization, which can be done with data intelligence tools, allows you to target key moments in customers’ lives: moving, divorce, birth, sale of business, inheritance, etc. It is particularly important at this crucial time when customers demand not only further development of digital services, but also better consideration of their personal needs.
Digital to gain in commercial and operational efficiency
The application of “KYC” (Know Your Customer) is a major challenge for the world of private wealth management. This set of rules obliges them to regularly collect information about their customers in order to identify possible fraudulent operations (money laundering, etc.), exposing themselves to serious sanctions in case of violation.
Fortunately, it is possible to make this process (as well as all other legal procedures imposed on the world of private banking) more fluid, namely through automation. This process automation allows wealth management professionals to focus on the core of their missions (personalized advice, client relationship, client follow-up, etc.).
By optimizing legal procedures, it is possible to free up time to dedicate to your core business, a time saving that also benefits customers. By strengthening its commercial and operational efficiency, the world of private wealth management also ensures greater customer satisfaction and better risk management.
Definitely a winning arbitrage.