What is Digital Wealth Management?

The general advancements and innovation of technology and digitalisation in the past decades are constantly finding adoption in wealth management now. While wealth management used to be something associated with the wealthier parts of society, this is...

The general advancements and innovation of technology and digitalisation in the past decades are constantly finding adoption in wealth management now. While wealth management used to be something associated with the wealthier parts of society, this is changing due to the easier access that digital wealth management tools are offering. Saving & investing are now available to people and companies with all budgets and demographics. These digital tools offer investors investment products for their savings that allow them to have full control over their wealth and grow their savings for the future. The benefits of the digitalisation of wealth management will be outlined here further. 

  1. What exactly is Digital Wealth Management?
  2. How Is It Helping Investors Manage Their Wealth and Grow It For The Future?
  3. Eliminate The Cost Of Lost Work
  4. Speed Up Production Cycles
  5. Secure Access
  6. Streamlined Distribution
  7. Reduce Workflow Redundancies
  8. Retain Brand Consistency And Integrity
  9. Improved Measurement of ROI
  10. What is a Digital Wealth Management Platform?

What exactly is Digital Wealth Management?

Digital Wealth Management

Digital wealth management is a financial service that deals with the investment needs of individuals. While traditional wealth management focuses on affluent clients, this type of wealth management is more accessible to the general public and through its digital tools takes many different forms allowing clients to receive portfolio recommendations and hence make investment decisions. These are based on algorithms to reduce the time and knowledge needed to invest in the financial markets.

As with many digital solutions, wealth management can now be undertaken from the comfort of home or mobile on the go. The setup and management process is done on a website or within an app, whose user-friendly designs make them easy to navigate. Clients can also tailor this process to their needs and the amount they are willing to risk to ensure they receive recommendations that are suitable for their current financial situation. Individuals benefit from automated tools such as digital chatbots that further enhance efficiency in the process. They also receive more external information, giving them further insights into how they can make their money work best for them.

How Is Digital Wealth Management Helping Investors Manage Their Wealth and Grow It For The Future?

Digital wealth management offers many benefits over typical wealth management and the the advent of these digital tools allows investors to navigate according to their profile regarding yield, risk, liquidity and transaction cost.

Next in Digital Wealth Management

Eliminate The Cost Of Lost Work

Within traditional wealth management, there is always the chance of human error occurring. Unfortunately, this is a fact of life in many businesses but it is something no one can afford to experience when it comes to dealing with money. Digital wealth management helps to eliminate the high cost of lost and misplaced work thanks to the automation of processes. Online system back-ups are available for further security and thus protect the wealth invested.

Speed Up Production Cycles

Digital wealth management tools help to offer more efficiency and agility to the parties involved. Instead of spending endless hours on manual tasks, automated processes are faster than ever before. The less time that an investor or manager has to spend on one task, the more time they have to spend elsewhere. This can lead to better investment decisions and hence better returns.

Secure Access

When it comes to dealing with finances, data security is of utmost importance. Digital wealth management allows stricter control over data access in general and how user groups interact. Organizations and individuals can restrict content to certain user groups and set further checks & balances where & if needed.

Streamlined Distribution

Users of this platforms are able to receive the information they need faster than ever before. They have instant access to materials from research teams and external partners, which they can access through various authorised digital channels whenever they need. On top of that, many digital wealth management platforms are integrated with other apps and technology, which can further synchronise processes and adds client convenience.

Reduce Workflow Redundancies

As with almost any industry that has been automated by technology, the digital wealth management field benefits from a reduction in workflow redundancies. This minimizes miscommunication between investors and businesses, which saves both time and money in the long run for everyone involved. 

Retain Brand Consistency And Integrity

Owners of digital wealth management platforms are able to ensure everyone is on the same page at all times. There should be no difference in the processes that all of their teams use, which helps to offer each of their clients a similar experience when it comes to their wealth management. Customers appreciate consistency in service. 

Improved Measurement of ROI

Thanks to the digital tools used within wealth management platforms these days, it is easier than ever to measure the ROI. Investors have all of the information they need at their fingertips so they will never be unsure about how currently their money is doing in the markets. This helps them to make better decisions to improve their ROI and prepare themselves financially for the future. Investors want to know that they are making the right decisions to continuously grow their assets. Thanks to digital wealth management this is now becoming a reality for investors worldwide.

What is a Digital Wealth Management Platform?

Digital Wealth Management Platform

Digital wealth management platforms are used by financial firms offering wealth management for their clients allowing their advisors the use of all of the tools and analytics to make best-informed investment decisions. This also represents for the clients the best solutions regarding their portfolios. A good wealth management platform will offer advisors smart solutions, which in turn should help them to understand the needs and expectations of their clients. These platforms benefit everyone within the organisation: from the stakeholders to team members and all the way through to the clients. Clients particularly appreciate the easy access they have to guidance and information about their investments. 

A good digital wealth management platform offers complete ownership of the client relationships providing consistent advice for clients across all communication channels. The advice is powered by investment strategies and market assumptions, which are tailored along the firm’s methodology. This consistency helps to improve customer satisfaction and avoids mixed messaging guaranteeing the famous “one face to the customer”.

As  mentioned earlier, digital wealth management is now available to a wider audience than ever before. However, it also has the ability to oversee some of the more complex investments. A digital wealth management platform can manage multiple investment programs within one single platform allowing advisors to fully automate the underlying investment strategies. They are then able to manage these strategies from anywhere in the world and offer their investors the best results possible. Finally, as with any type of digitalisation, digital wealth management minimizes the time and hence cost that it takes to onboard clients.

The ongoing digitalisation and continuous innovation of wealth management will see the adoption going from gradual to exponential. This will positively impact financial service providers, clients and asset classes while democratising wealth management in general and making solutions available to wider audiences that would have been previously left out.

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