The Power of Automation in Wealth Management: Leveraging ServiceNow FSO

Private wealth management has seen significant advancement in the last decade or so due to the worldwide expansion of prosperity. The number of millionaires in North America doubled from 2010 to 2020. A comparable pattern can be noticed in the Asia-Pacific and Europe areas. This upsurge in affluence has propelled the wealth management sector into pristine realms, necessitating creative solutions to cope with the issues accompanying increased customer portfolios.

Given the brisk expansion of the sector, there is an increasing urgency for wealth management solutions that are efficient, sophisticated, and adaptable and can propel automation. After all, only the best automation solutions can keep up with the increasing demands to help teams manage and process information at a faster rate.

Favorably, top wealth management firms have been revamping their operations to implement new technology. However, they often find themselves constrained and are forced to use a hodgepodge of disparate tools to handle different processes. 

So, while the industry is still in the process of transitioning from traditional ways of managing clients and assets, it has now reached a point where solutions like ServiceNow FSO should be implemented to streamline key business functions — auto-discovery, configuration management, change governance, and IT service management.

What are the Challenges of Wealth Management?

The US wealth management sector was worth an eye-opening $29.1 trillion as of Q3 2020. Fast forward to today, and Statista expects assets under management (AUM) to be worth $58.4 trillion in 2023.

Indeed, wealth management is a highly remunerative occupation, yet it possesses its own set of difficulties stemming from the lack of comfort between clients and professionals and the sense of moral obligation to service before profit. Here’s a more profound rundown of these challenges:

Complexity of Client Relationships

Negotiating the intricacies of clientele associations, administering their multi-faceted portfolios, and providing custom-made services can prove to be a hassle. As the financial situations of patrons become more complicated, asset advisers find themselves amid more challenging scenarios.

Operational Inefficiencies

Manual and disjointed activities in the middle and back offices can produce inefficiencies, impacting customer support provision and overall productivity levels. From addressing grievances to settling billing and account problems, these tasks necessitate a methodical approach.

Cybersecurity and Compliance

Cybersecurity is of great importance in the wealth management sphere. With the consistent alterations of legal requirements and the need to adhere to regulations like SOX, PCI DSS, BSA, etc., institutions must always be watchful. In order to remain compliant and secure against data breaches, they must implement proactive tactics that are agile and responsive.

How Does ServiceNow FSO Address These Challenges

In the context of these daunting challenges, ServiceNow FSO has proven itself to be a critical driver of transformation across the wealth management landscape. Through its advanced automation capabilities, it offers a comprehensive solution for all facets of wealth management and sets the stage for future workflows to be more streamlined and efficient. 

This bodes well when we consider that 70% of financial advisors still perform transactional activities on paper, while 95% seek high levels of automation. That said, here’s how the power of automation comes to the fore to streamline wealth management processes:

Automating Middle and Back Office Processes

ServiceNow FSO helps automate middle and back office processes, including dealing with grievances, fixing billing/account issues, administering funds/plans, managing portfolio visibility, tackling usual concerns, and producing performance reports. 

It further helps in constructing a superior digital customer service experience with end-to-end visibility that permits wealth managers to make shrewd selections and act swiftly for customers, thereby initiating improved client faithfulness. Not to mention the facilitation of self-service, which allows clients to proactively address regular concerns.

Automating Branch Workflows

FSO proves immensely viable in connecting and unifying disparate, manual systems across the enterprise. This involves digitizing procedures, crafting instantaneous operations, and making sure of efficient advisor and customer interaction. 

All in all, with ServiceNow, you can solidify financial wellness operations and proactively provide for customers, guaranteeing their interests are continuously kept intact.

Automating Response to Cyber Threats

As elucidated above, the need to adhere to regulatory requirements is critical for financial institutions. ServiceNow FSO wards off this challenge by automating the response to cyber threats. It allows institutions to keep aware of the regulatory modifications and frameworks like GDPR, PSD2, CMA, etc.

Automating Onboarding

The Financial Services Operations solution has been specifically designed to help financial institutions to digitize the end-to-end onboarding process. How is this facilitated?

  • FSO comes as a unified system for managing all the workflows in the middle and back offices.
  • End-to-end visibility is provided to clients and advisors into the unified system, along with a real-time audit trail.
  • Workflows across this unified system can be automated by institutions as per their needs.

As such, FSO eliminates the tedious onboarding process, amplifies employee participation, drastically reduces the expenses of wealth management firms, and helps all employees throughout the wealth management lifecycle.

Future Proof Wealth Management with Xceltrait

ServiceNow Financial Services Operations (FSO) is the ideal platform for progressive wealth management firms focused on increasing customer satisfaction and establishing a competitive advantage within the industry. Xceltrait enables wealth management firms to traverse this path of utilizing FSO for continued success and tangible gains.

We allow wealth management firms to embrace FSO-facilitated automation to enhance client relationships, streamline operations, and proactively manage risks. Reach out to us today for more information.

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