The document discusses the need for wealth managers to adopt a hybrid advisory model that combines automated and digital services with traditional human advisory services. It notes that over half of wealthy clients feel disconnected from their wealth managers and expect more innovative and personalized engagement. A hybrid model can improve the client experience through features like personalized advice, a single client view, digital tools, and omni-channel access. It also increases advisor productivity by automating repetitive tasks. Properly implementing a hybrid model requires addressing legacy systems, securing senior support, and taking an agile "top down" approach to change management. The model has the potential to drive efficiencies, improve client satisfaction and retention, and help wealth managers adapt to shifting client expectations and regulatory changes.

1. The Next
Generation
Advisory
Model

2. 01.
01|TheNextGenerationAdvisorymodel
55% of the world’s
wealthy lack a strong
connection with their
wealth manager.

3. 02|TheNextGenerationAdvisorymodel
A GLANCE AT THE MARKET
02.
There has been a fundamental shift in
wealth management. Individual
wealth is on the up and clients expect
innovative and personal engagement
from their advisors. But as the industry
struggles to keep up with these
shifting dynamics and growing
expectations, are wealth managers
truly realizing the full potential of
digitization or are they still seeing
technology as a threat? We look at the
benefits that an effective digital
transformation strategy can have on
the client experience, but equally as
important, on internal processes in the
front office, and the steps wealth
managers need to take to maximize
these while not forfeiting the human
touch.
Global wealth is at a record high but the
industry is struggling to keep up. Client
satisfaction is waning across the board:
Capgemini says that more than half of the
world’s wealthy (55%) lack a strong connection
with their wealth manager. For an industry
that’s been built on relationships, that’s a lot
of missed opportunity.
The driving forces behind wealth are
changing. The high net worth individuals
(HNWIs) that have long propped up the
industry are living longer. Established wealth
has paved the way for a younger generation
of HNWIs who want more from their wealth
managers, faster than ever and on their
terms. Internet giants have shaped consumer
expectations of digital capabilities, service
and speed of delivery, regardless of sector.
And as wealth managers fend off pioneering
new entrants, many have realized they have
no choice but to embrace digital if they want
to keep clients onside and stay in the game.

4. 1
Capgemini World Wealth Report 2018
03|TheNextGenerationAdvisorymodel
A single view of all client data to ensure key
information is always in easy reach for an advisor,
and to support automation and the application
of AI.
An intelligent and guided workflow engine
created with 'compliance by design', helping to
reduce the change of errors and remove
manual work.
Dynamic segmentation to ensure clients
receive personalized servicing and marketing,
through the delivery of engagement and
content suggestions.
Digital assistants and tools to help reduce the
administrative burden on front office staff,
removing low value administrative work, and
allowing them to focus on adding value. These
could take the form of automated meeting
transcription, to report pack preparation.
Portfolio Management Tools to support
automated rebalancing, proposal generation
and even research suggestions.
An omni-channel and frictionless approach to
engagement, allowing clients to self-serve
where appropriate, and when needed to
engage their advisor through the channels
they most commonly use, including via
messaging applications, LinkedIn and video
conferencing.
Key Components
HYBRID ADVISORY MODEL
INTRODUCING THE
70% OF CLIENTS
SAY THEY WOULD
ONLY CONSIDER
CONSOLIDATING
THEIR ASSETS TO
THEIR PRIMARY
WEALTH MANAGER
IF THEY OFFERED
HYBRID ADVICE.1
The hybrid advisory model combines a fully
automated offering and the traditional human
only service model. It combines intelligent
automation and Artificial Intelligence (AI) to
support human advisors in providing an
enhanced and more personalised service. It’s
about using tech-nology to automate repetitive
and repeatable tasks and allow advisors to
focus on one key area you can’t automate,
trust.

5. 04|TheNextGenerationAdvisorymodel
UNLOCKING THE FULL
POTENTIAL OF HYBRID
2
The WealthTech Book- Susanne Chishti & Thomas Puschmann 2018
04.
1
2 3all of which, with a hybrid advisory model
in place are achievable2
.
THE 3 DRIVERS TO
MAXIMIZE THE AMOUNT
CLIENTS INVEST WITH
THEIR WEALTH
MANGERS:
Personal
relationships
Personalized
and bespoke
advice
The quality
of the
service
Creating opportunities to grow
Digitisation has been proven to present
significant opportunities for business growth.
The end goal of automation, smooth workflow
management, not only minimises potential
data loss and downstream reworking, but
enables effective end-to-end processes across
the breadth of the business.
The empowering client perspective that the
hybrid model presents enables firms to provide
truly targeted, tailored advice and solutions
which not only instil confidence in clients but
serve as a springboard for deeper and more
fruitful relationships in the long term.
Furthermore, this will allow firms to optimize
client retention and drive organic growth.
Keeping up with regulatory change
Regulatory change is one of the few certainties
in financial services today. As firms make sense
of shifting regulatory requirements, the client
should remain at the heart of these.
Automating both client-centric and regulatory
activities will put wealth managers one step
ahead of shifting client and industry
requirements, and provide the insight they
need to stay compliant, commercial and
innovative. Automated risk profiling, KYC
capture and suitability assessment are faster
and less erroneous than manual alternatives.
Improving the client experience
Traditional advice is falling short of client
expectations. Today’s wealthy want to be
involved in their finances: close to 70% say they
would only consider consolidating their assets
to their primary wealth manager if they offered
hybrid advice. Relationships may still be the
backbone of the industry in today’s multi-
channel world, but they are not enough to
shoulder inefficient technology and disparate
service.
While customer feedback and insights gleaned
internally have long determined wealth
managers’ product and business focus, it’s
more important than ever that they collate data
driven by digitization into a single view of the
client. This will provide firms with the
foundation through which they can evaluate
and improve services, and anticipate client
needs as their wealth evolves.
Increasing advisor productivity
Effective digitisation will also transform the
advisor experience: automating processes can
reduce time spent by advisors on preparing for
client meetings and reviews by 50%- valuable
time that could be invested in clients and
prospects. Automation has revolutionised the
notoriously inefficient onboarding process,
eliminating layers of administration, enabling
client engagement throughout and reducing
time spent on onboarding clients by up to 25
times. And once clients have been onboarded,
real-time insight empowers a proactive and
targeted delivery of service, and significantly
improves advisor productivity.

6. 05.
05|TheNextGenerationAdvisorymodel
KEY CONSIDERATIONS
FOR IMPLEMENTING THE
HYBRID MODEL
Achieving this powerful client hybrid
advisory model will transform the
delivery of advice and drive efficiencies
for wealth managers across the board.
Successful delivery and implementation
of a hybrid model will not only unlock
invaluable intelligence that empowers
marketing and sales strategies and
quantifies success; but gives firms a
clear advantage in client service,
satisfaction and retention.
1. Think Bigger
Intelligent Automation and AI should be
incorporated into the full wealth management
value chain and run across the breadth of a
business, beyond just the front office.
2. Don’t do in isolation
Many wealth managers are weighed down by
legacy systems that hinder back-end
processes – and these must be addressed if
they are to achieve seamless business
interoperability.
3. More than just the tech
Technology aside, staff engagement is a
significant challenge that stands in between
wealth managers and the esteemed client
perspective needed in order to provide a
market-leading service.
4. Recognize the importance of
governance and execution
Internally, firms must secure senior support
from the outset, agreeing costs, timelines and
governance to maintain involvement and
accountability. A ‘top down’ approach will
drive widespread employee engagement;
and agile delivery could cut timelines by half
while enabling on-going evaluation and
adaption throughout inception.
CONCLUSION

7. 06.
A ‘top down’ approach will
drive widespread employee
engagement; and agile
delivery could cut timelines
by half.

8. The Difference is (H)ours.
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