Should banks follow every trend?


Digitalisation has now permeated almost every area of our lives, and the financial sector is no exception. As with most new technologies, however, digitalisation also has its pitfalls – things that at first glance may seem useful, but ultimately turn out to be a waste of time. Financial services providers must therefore choose carefully between the new technologies that they want to adopt and the ones that will bring no meaningful benefit to their company. If asset management were to follow every sector trend, this would not only come at a considerable cost – at worst, it could even damage its image. One thing, however, is undeniable: digitalisation in itself is no trend – it is a far-reaching technological development and the future of asset management.


Clients expect modern banking

While it’s true that digitalisation brings both advantages and disadvantages for financial services providers, asset management stakeholders cannot completely shut themselves off from technological trends. One of the most important reasons for this is that end clients have quite simply come to expect certain new technologies. Nowadays, nobody wants to have to go into a bank branch just to get information.

Most clients expect a comprehensive and interactive advisory service tailored to their needs – and it’s in precisely this area that digital technologies can really add value. The central management and analysis of all client data paints a much clearer picture. Furthermore, automated analysis functions even allow certain risks to be eliminated upfront. This not only improves the advisory service, it also strengthens clients’ trust in the company – and that is worth far more than any technological gimmicks that might be used to target clients.


Digital technology helps companies to comply with legal requirements

In addition to client expectations, increasing regulatory demands also offer another argument for the use of digital asset management platforms. These include anti-money laundering laws, compliance requirements relating to employees’ business activities, new consumer and data protection legislation, and the FINMA directives – to name just a few. The regulatory requirements faced by asset managers and banks have increased significantly in the past few years.

New digital technologies are the reason for many of these new laws — which is why it’s only logical to also use digital technologies to meet these requirements. Furthermore, these technologies can help companies to prevent transgressions caused by operating errors or knowledge gaps, and to trace any wilfully committed crimes quickly and completely.


Work more efficiently thanks to digital technology

To date, it has been largely external factors that have supported the use of digital technologies, but banks and asset managers can of course benefit from these technologies in their daily business too. Digital technologies can optimise the organisation of internal tasks, work processes and controls, thus making them far more efficient. Financial institutions are able to use consolidated client data to offer their clients targeted products and services that are tailored to their needs. Other scenarios can also be played out and tested in this way, which can help to minimise risks.


Shaping the digital future – with the right partner

Digital technologies offer many opportunities for the financial sector, most of which are extremely useful. It is thus important to select the right asset management sector trends in order to create real added value both for the company and its clients. Finally, let’s return to the question posed at the start of the article: how can banks and asset managers take advantage of useful developments without falling foul of over-hyped trends?

For the digitalisation of processes, a good option is to opt for an external service provider with an overall concept, rather than to focus on individual solutions. This allows financial institutions to select from a portfolio of modules to find the elements that they require for their business. These elements are perfectly tailored to one another and are usually very scalable – which means that each solution can be customised to your specific needs. You can also outsource all technical matters, including maintenance and support – allowing you to focus 100% on your core business. If you would like to find out more about solutions like this, our Evolute experts will be happy to advise you.


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The lucky winner of our blog contest is Roger Frautschi, COO Marcuard Heritage. Mr. Frautschi wins a copy of the book "Innovationen und Innovationsmanagement in der Finanzbranche", which our Sales Executive Raphael Suter personally presented to him with great pleasure.


Topics: Digital wealth management

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