Unlocking Efficiency in Wealth Management: The Power of ServiceNow FSO

Wealth management is complex, for it necessitates maintaining utter operational efficiency, streamlining client relationship management, taking care of compliance and risks, and more. A 2021 McKinsey study outlined that the US wealth management revenues surpassed the costs by a meager percentage — all while the markets were favorable.

To address such challenges and ensure that wealth management yields profitability for the enterprise as well as clients, it’s prudent for organizations to adopt a solution like ServiceNow FSO.

Unlocking Wealth Management Efficiency with ServiceNow FSO

ServiceNow Financial Services Operations (FSO) is a powerful platform that can help wealth management firms automate core processes, improve workflow efficiency, and reduce costs. The idea is to foster connected operations, provide digital customer service, ensure operational continuity and resilience, etc.

It’s noteworthy that efficiency is the linchpin of any successful wealth management operation. The integration of ServiceNow FSO can usher in a new era of efficiency in wealth management, transforming the way firms operate.

Here’s how its capabilities come to the fore to help wealth management firms:

Account Opening and Onboarding

In a Deloitte survey of 20 Swiss wealth management firms, including those that are active globally, most wealth managers stressed that their onboarding experience is far from convenient. In fact, they outlined that the average time to onboard a client remains high at 14 days and longer.

Favorably, ServiceNow FSO can help wealth management firms streamline the account opening and onboarding process by automating tasks such as:

  • Collecting client data
  • Verifying documents
  • Performing KYC/AML checks
  • Generating account documentation
  • Communicating with clients throughout the onboarding process

This way, FSO reduces the time it takes to onboard new clients and improves the client experience.

Investment Management

Investment management is a complex and demanding process that requires a high level of expertise and precision. As it stands, automation can help improve the efficiency and accuracy of investment management. 

ServiceNow FSO brings much-needed automation capabilities to the table, allowing wealth management firms to automate tasks such as portfolio rebalancing, risk management, trade execution, performance reporting, etc. This can free up investment managers to focus on more strategic tasks, such as developing and implementing investment strategies.

Client Servicing

About 50% of the clients say that personal attention is critical for a better wealth management relationship. The good thing is that ServiceNow FSO allows for the creation of digital customer service workflows. Wealth managers are empowered with end-to-end visibility so that they can:

  • Respond to client inquiries on time
  • Provide account updates
  • Generate reports
  • Effectively manage client relationships

Reduced Costs

One of the immediate benefits of deploying ServiceNow FSO is cost reduction. Wealth management firms can streamline their processes, reducing operational overhead. The automation of routine tasks, such as data entry, reconciliation, and report generation, cuts down on labor costs. Moreover, the platform’s scalability ensures that as your firm grows, costs remain in check.

Increased Productivity

ServiceNow FSO is designed to enhance productivity across various aspects of wealth management. It automates and optimizes workflows, enabling employees to focus on high-value tasks, such as client interaction and strategic decision-making. The platform’s user-friendly interface empowers employees to work more efficiently and access critical information with ease.

Error Resolution in the Post-Trade Experience

Post-trade errors can be a significant challenge in wealth management, impacting client satisfaction and regulatory compliance. As per the European Securities and Markets Authority, failed trades represent a notable percentage of trade value in various markets.

The root of the problem often lies in outdated core systems or fragmented homegrown solutions that hinder a seamless trade execution process. When a trade fails, it triggers a labor-intensive cross-team collaboration process to identify and resolve the issue, often requiring additional client feedback.

ServiceNow FSO intervenes by providing a unified platform that ensures streamlined post-trade processes. It automates error detection and resolution, reducing the need for manual intervention. Real-time tracking and reporting capabilities enable teams to swiftly identify and address issues, enhancing the post-trade experience for both clients and internal teams.

Personalized Service

Personalization is the cornerstone of client-centric wealth management. ServiceNow FSO empowers wealth managers with a suite of tools to tailor services according to each client’s unique needs, preferences, and financial goals. From personalized investment strategies to customized reporting, clients receive a level of service that reflects their individual financial journey.

Improved Responsiveness: An Omni-Channel Capability

Responsiveness is a critical component of client satisfaction. ServiceNow FSO goes beyond traditional means by providing an omni-channel operational capability. It allows clients to choose their preferred engagement and collaboration channels. This versatility ensures that clients can interact with their wealth managers in a way that suits their preferences and lifestyles, fostering stronger client relationships.

Increased Transparency and Trust

Transparency is fundamental in wealth management, especially in an age where clients seek greater insight into their investments and financial decisions. ServiceNow FSO offers a transparent view of the entire wealth management process. 

Clients gain real-time access to their portfolios, investment performance, and transaction history. This level of transparency fosters trust and confidence in the wealth management firm, as clients are assured that their financial well-being is managed with the utmost clarity and integrity.

The Way Forward

ServiceNow FSO is a powerful platform that can help wealth management firms unlock efficiency, improve compliance, and enhance the customer experience. By automating core processes, streamlining workflows, and providing a single platform for managing all operations, it can help wealth management firms achieve their business goals.

Xceltrait is a leading ServiceNow partner. We have a profound understanding of the wealth management industry, and we are experts in helping firms implement ServiceNow FSO to meet their specific needs.

If you are a wealth management firm looking to improve your efficiency, compliance, and customer service, get in touch today!

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