The majority of wealth managers are either dissatisfied or indifferent to their current technology systems, according to research from Avaloq,
The research by the wealth management tech provider, revealed 31 per cent are satisfied their technology is up to date, versus 45 per cent who said their systems are outdated.
Meanwhile, a quarter (25 per cent) said they are indifferent.
Just 29 per cent said their technology is designed to suit their needs and 38 per cent said they can easily find the information they need.
Suman Rao, managing director for the UK and Ireland at Avaloq, said: “Our research reveals that too many wealth management professionals are burdened with complex, outdated technology systems that do not provide them with the support they need in client meetings.
“Despite this, they are well aware of the potential benefits a well-functioning technology system can provide to their day-to-day operations, so it is important that providers step up to deliver the analytics, automation and visualization that they need.”
Just over half of wealth managers globally (54 per cent) use investment advisory technology in client meetings.
Of those not yet using advisory systems, two thirds (67 per cent) would like to, indicating an opportunity to integrate systems that are up to the task.
The biggest barriers to using advisory tools are user interfaces that are not optimised (69 per cent) and technologies that are too confusing to use with clients (60 per cent).
For UK wealth managers, while a similar amount (55 per cent) use investment advisory tools, just 44 per cent of those who don’t said they would like to.
Globally, more than half of wealth managers identified similar challenges, with intuitive navigation (58 per cent) and the requirement to use too many different systems (54 per cent) the most commonly cited.
The latter complaint is backed by Avaloq’s finding that almost a fifth of wealth managers (17 per cent) currently rely on over 10 technology systems to conduct their daily tasks, while half (50 per cent) of respondents use between four and six.
Rao said: “Often, wealth management professionals use too many different systems and would benefit from simplifying or consolidating their technology ecosystem.
“Finding the right partner will help them to streamline their operations and better use their technology to improve client service.”
Despite this, Avaloq said it found widespread enthusiasm and demand for well-functioning technology systems.
Enhanced data visualisation (66 per cent), automated regulatory checks (58 per cent) and automated portfolio monitoring (57 per cent) emerged as the top three functionalities.
sonia.rach@ft.com
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