The health crisis, an accelerator for the digitization of private management

The Covid-19 crisis has proven to be an accelerator of the digitization already underway in many companies. It exerted particular pressure on financial services.

Therefore, in an increasingly competitive context, where digital is becoming an essential value, the wealth management world needs to amplify their 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 impact on their business.

Indeed, the crisis has revealed many weaknesses among wealth management professionals. Example: Security issues, lack of follow-up, difficulties accessing files (digital or paper)…

By forcing wealth management professionals to work remotely, the pandemic has accelerated the demand for digitalization that had been simmering before. This is therefore an opportunity to improve the existing systems, but also, if necessary, to set up a new way of working. 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

The fact is, at the height of the health crisis, the companies that did well were the ones that could adapt as quickly and efficiently as possible. According to a study conducted by McKinsey, 72% of companies that used new technologies during the crisis reported very good management of them in their company, compared to 33% for 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 outbreak of the crisis, it is now crucial, even a priority. This is why many companies – and especially the private wealth management world – are now focusing on improving their customer experience, with the aim of distinguishing themselves from competitors and adapting to the post-crisis context. Strengthening complaint follow-up programs, increasing investment in CRM, developing digital tools, simplifying customer journeys, developing an omnichannel strategy that also emphasizes security… So many ways to greatly improve the customer experience as we adapt to changing customer requirements and needs, especially in the field of digital technology.

Indeed, the Covid-19 crisis has demonstrated the importance of the proper functioning of digital platforms. The digitization of the customer experience thus consists of simplifying the handling of requests and access to information for the customer and employees. This is especially important in a context where remote work is becoming ubiquitous and where client advisors don’t always have access to the platforms and databases they use in their usual work environment.

Strengthen knowledge and customer 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 bond with prospects and customers, in particular by offering communication and services based on informational data (first name, last name, date of birth, etc.).

This personalization, which can be done with the help of data intelligence tools, makes it possible to target key moments in the lives of customers: relocation, divorce, birth, sale of a company, inheritance, etc. It is especially important on this crucial moment, when customers demand not only greater development of digital services, but also more attention to their personal needs.

Digital to win in commercial and operational efficiency

The application of “KYC” (Know Your Client) is a major challenge for the private wealth management world. This set of regulations requires them to regularly collect information about their customers in order to identify possible fraudulent transactions (money laundering, etc.), and expose themselves to severe penalties in case of infringement.

Fortunately, it is possible to make this process (as well as any other legal process imposed on the private banking world) more fluid, especially through automation. This automation of processes allows wealth management professionals to focus on the core of their mission (tailored advice, customer relations, customer follow-up, etc.).

By optimizing the legal procedures, it is therefore possible to free up time for its core business, a time saving that also benefits customers. By enhancing their commercial and operational efficiencies, the private wealth management world is also driving greater customer satisfaction and better risk management.

Definitely a winning arbitration.

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