Why asset management firms should automate legacy processes

by | Apr 13, 2021 | Blog, Process automation

Are outdated legacy processes holding your asset management firm back?

It’s a common issue faced throughout the industry, with many firms still latching on to solely human-led services.

But, the truth is, shunning technological advancements in favour of legacy processes isn’t sustainable.

To stay profitable and competitive, you’ll need to embrace key technologies such as automation.

Why automate legacy processes?

While human input and relationship-building are important within wealth management, the need to boost efficiency and provide better, quicker and more tailored services to investors is paramount.

Automation is one key technology that can reimagine these legacy processes and bring you a wealth of benefits.

These benefits include:

  • Heightening productivity
  • Cutting down on inefficient tasks
  • Streamlining client workflows
  • Improving client services

In the following section, we’ll dive into each of these in more detail.

Boost client onboarding

Did you know that 65 percent of asset managers spend most of their time on client acquisition and onboarding?

That’s a lot of time wasted on a legacy task that your firm could handle through automation.

In fact, according to Deloitte, account opening and maintenance is one of the leading areas where wealth managers can utilise full automation. On top of this, advisors could also partially automate client due diligence and referrals.

By automating these processes, your firm can not only gain back productive time but also streamline the entire client onboarding workflow.

Speed-up internal processes

Eighty-seven percent of wealth management executives believe technology is significant in achieving operational efficiency.

Fortunately, automation plays an integral part in this.

For asset managers, there are plenty of opportunities to switch up legacy processes with either full automation or a mix of hybrid human/automation. These include:

  • Acquisition and servicing
  • Investment planning and trade
  • Portfolio management
  • Advisory and reporting

In addition to these client-centric tasks, you can also automate bite-size internal legacy processes in minutes, without the need for any tricky code.

As an example, your firm may want to automate the approval process. With a simplistic tool such as Power Automate, you can create workflows that allow you to quickly approve or deny requests (for instance, when an asset manager requests a license for new software).

Provide unique client services

Sixty-four percent of wealth managers believe digital technologies are essential for communication and service enhancement.

While human interaction is still hugely important for asset management firms, your teams can only work so fast and spare so many hours. And, well, leaving your prospective investors and clients hanging on the phone isn’t good service.

This is where automated tools, such as robo-advisors, can come into play.

Robo-advisors ingest information from prospective clients and curate specific investment recommendations without the need for human input. This allows your advisors and asset managers to spend time on more pressing tasks.

Finetune your firm’s services

For asset management firms that still rely on outdated, legacy processes, automation isn’t just a nice-to-have add-on: it’s a necessity.

With simple automated tools, you can boost your efficiency and ensure your services are competitive.

Keen to find out more? Download our process automation guide and discover simple answers to complex legacy processes.

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