Ovum reveals wealth management institutions to invest heavily in digital channels through bumpy recovery
"Increasing profitability is a priority for all financial institutions," says Jaroslaw Knapik, senior analyst, financial services technology, Ovum. "As the use of digital channels increases, banks will strengthen their focus on mobile channels and self-service functionality in an effort to connect and empower their customers."
The growth in IT spending by wealth management institutions will give rise to more personal financial management tools offered to customers. Increased support for smartphones and tablets will be driven largely by investment from non-financial institutions, as well as the recent advances made in mobile finance platform technology. Ovum forecasts that investment in Internet and presence technologies by Europe's high net worth banking and financial planning businesses will reach $304m, while retail brokerage and retail asset management organisations will increase their investment to $242m and $148m, respectively.
Knapik concludes: "Customer attitude toward banks has changed greatly as a result of the financial crisis. Increasingly, digital channels are being developed to improve customer loyalty and cross-selling opportunities but also to lower servicing costs. While the economy is recovering, organisations should be focusing on the opportunity to increase revenue and improve trust among customers. This, coupled with the increased investment in personal finance management tools, will enable more self-management and closer monitoring of financial assets, helping to increase overall knowledge of finance management."
Wealth Management Technology Spending Through 2016 (July 2012)
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