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Wealth Managers Face ‘Fight for Survival’, Says Temenos Study

Report says a generational transfer of wealth is ‘reshaping the wealth management industry’

Insights,
Temenos – Company

At the 17th Temenos Community Forum in Barcelona – on 19 May 2016 – Temenos (SIX: TEMN), the software specialist for banking and finance, today announces a great transfer in wealth from aging baby boomers to younger generations is reshaping the wealth management industry in ways that demand greater efficiency and adaptation by incumbent firms, according to a new report today from Temenos and Forbes Insights.

The report, The Rise of Bionic Wealth: A Hybrid Model of Cutting-Edge Technology and Advisor Expertise Heralds the Future for Wealth Managers, explores how Generations X and Y now move ‘effortlessly across both the analog world of face-to-face meetings and the virtual world of digital platforms that enable the fast and accurate service they expect’.

The research suggests that success, even survival, for wealth managers will depend on giving rising client segments what they need in terms of service and financial performance. An increasingly complex set of customer demands will mean that firms must modernize their technology approach without alienating older clients, still the bedrock of their business.

Pierre Bouquieaux, Product Director, Wealth Management at Temenos, said:

“With this generational transfer of wealth underway, firms must be alert to the challenges presented by a more complex set of customer needs – as well as growing cyber risks. Yet, this is a fantastic opportunity. These findings highlight that increasingly intelligent technology will help wealth managers redefine processes, find new efficiencies and build better relationships with their clients.”

Temenos, in partnership with Forbes Insights, surveyed more than 60 wealth managers and 35 High-Net-Worth (HNW) clients about the evolving banking experience—how they communicate, their needs and the importance of technology. The report includes commentary from executives at leading investment and private banks. Key findings include:

  • Over 40% of wealth managers believe that a mix of digital and offline ways of communicating is ideal.
  • Over a third (34%) of HNW clients now demand some form of digital communication from their wealth manager.
  • Almost two thirds (62%) of HNW clients are now in favor of ‘the digitization of wealth management services’ – but still want to meet often with an advisor.
  • Just under a fifth (17%) of HNW clients say technology is now essential.
  • Around half (48%) of HNW clients rate cyber risk and hacking as a top concern related to the use of technology.

About the Research

Temenos, in partnership with Forbes Insights, surveyed more than 60 wealth managers and 35 High-Net-Worth (HNW) clients about the evolving banking experience—how they communicate, their needs and the importance of technology. More than half of the executives surveyed are CEOs, and almost 30% are heads of asset management. Three-quarters of the executives are evenly split across Asia Pacific, Europe and North America. Almost 90% of clients surveyed have net worth between $1.4 million and $7 million. This report outlines the key findings from the research, with commentary from executives at three leading investment and private banks.

About the Temenos Community Forum

The Temenos Community Forum (TCF) was started in 1999 as an annual event for Temenos users. Since that time, it has become one of the largest financial services conferences in the world, attracting a large global audience of more than 1,200 delegates comprising Temenos customers, partners, employees, investors as well as other industry participants such as journalists, bloggers and research analysts.

To get live updates or to join in the conversation at this year’s Temenos Community Forum please use the hashtag #TCF2016 on Twitter.


Temenos Press Contacts

Jessica Wolfe

Temenos Global Public Relations

Alistair Kellie & Andrew Adie

Newgate Communications for Temenos

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Insights,
Temenos – Company