Large versus small players

Wed 11 May 2016 Author: Nadiia Category: Points of view
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As the ongoing transformations of wealth management are broad in scope, one might think they are accessible only to the largest institutions.

Actually most of them have indeed embraced the observation and planning phase, but less so the operational one. The recent Accenture report on European financial services digital readiness documents this phenomenon. One conclusion of that report is that European banks have made good progress in creating client-facing digital interfaces but are lagging in terms of leveraging digital tools for product development and operations.

In that respect smaller entities also have their advantages over larger banks. One advantage of independent financial advisors and smaller family offices is the lowest dependency they have on heavy legacy systems. The other one is a shorter decision making process.

Hence it is not a matter of size. Independents are not doomed to fail. Provided they partner with the right enablers, they can become as agile and entrepreneurial as the start-ups that have recently entered the online wealth management space.