This week on WealthTech Unwrapped, we’re hosting two guests for the first time. Alex Smith and Danielle Theroux, Principal Consultant and Principal Digital Consultant respectively, bring a wealth of experience to the discussion that tracks the landscape of the financial services industry. Ned speaks to our guests about some of the challenges that the industry face and changes they’d like to see in the future.
One of the main challenges of the financial services industry is bridging the gap between clients’ expectations and firms evolving fast enough to meet those demands. As digital wealth services are not as mature as other industries, Alan and Danielle suggest that it’s crucial to stratify client bases and understand the segmented needs to provide holistic solutions.
It’s beyond doubt that customers look for solutions that are delivered in a relatable and accessible manner. Financial services providers have to consider modernized means for customers to make wealth decisions easily and frictionlessly. For example, digital natives and immigrants would likely require differing approaches in which firms need to create distinct pathways for varying customer segments. Wealth managers should optimize their customer data through machine learning, predictive analytics and apply behavioral finance to help clients identify the right solution.
Danielle mentions the concept of co-opetition, where competitive businesses and their clients are likely to benefit from collaborative efforts that foster innovation and fairness. In the same way, merging the vast knowledge and resources of both legacy banks and startups could propel the industry forward in transformative ways.