New research from Paragon reveals Asset and Wealth Management sector is struggling with digital transformation
The Paragon DCX report – The world’s gone digital; why haven’t you? – Barriers to, and opportunities for, digital transformation in the asset and wealth management sector – written by London Research, unveils the feelings and opinions of senior executives from across the asset and wealth management industry.
Almost everyone interviewed for the report said the sector is behind the curve in terms of digital maturity, including their own organisation. However, the struggle to instigate digital transformation is not because the Board fails to recognise the importance of digital transformation. All the interviewees said their company had a digital transformation strategy in place. But for most this strategy had ‘got stuck’. The C-suite is more concerned with delivering returns to investors in the face of continuing economic instability while, lower down, middle management tends to be both less focused on digital, and highly risk averse.
Speaking on the findings, Andy Farmer, chief strategy officer at Paragon DCX, commented: “Asset and wealth management has always been a sector based on personal relationships. The difference now is that firms have to start and maintain those personal relationships in the digital space. Yet, it appears that most asset and wealth management firms are still at the stage of digitising their existing processes, rather than trying to transform themselves for the digital world.”
Farmer continued: “A lack of focus from the top on improving the digital experience, or realising this could make or break an organisation, is a real concern. With an increasingly digitally-savvy customer base, who have expectations of a retail-like experience from all brands, firms in the asset and wealth management sector risk losing market share and missing out on new clients and customers – all of which could damage financial performance in the long run."
The report also identifies a number of other barriers facing asset and wealth management companies in their digital journey, including regulatory and compliance issues, siloed data, success measurement, and being able to convince senior management.
It concludes with a number of recommendations for asset and wealth management businesses trying to increase their digital maturity.
How Paragon can help
Getting started with digital transformation can, at first thought, seem overwhelming.
We've been working in the asset and wealth management sector for over 15 years and know a thing or two about bringing digital transformation programmes to life with great success, ensuring you're delivering for customers, colleagues, and commercial gain.
We'll work with you to deliver optimal digital experience solutions that will support your business needs, and deliver ground-breaking, leading-edge experiences for your customers.