Evolving wealth management in a digital ageby Juan Carlos Lopez, Jason Lambertson and Scott Ponder

Shifting client expectationsTechnology evolution is rapidly changing the market and competitive landscape for wealth

technically capable than ever before, as advances in consumer technology and the 24/7 news cycle enable seamless and almost limitless access to markets information. The impact of technology does not stop there. It has also produced new, non-traditional entrants — enabled by emerging mobile, analytics and cloud-based services — that have altered the competitive landscape by creating more options for clients to choose from. As a result of these factors, the expectations of wealth management clients have shifted: they now demand personalized services and products, and expect access to services through their channel of preference whenever and wherever they want.

Financial Services

2 | Evolving wealth management in a digital age

TabletsAccording to Gartner, the tablet market is expected to reach 197 million units in 2013 and 265 million units in 2014.1 This rapid growth is changing user behavior and channel preference for

themselves by accelerating delivery of value-added services to clients via tablet devices, including the ability to research, plan and execute transactions and manage their accounts. Advances in authentication and resolution of tablet browser compatibility issues will be required to streamline the end-user experience and meet rising client expectations for seamless operation.

The relevance of tablets extends beyond direct interaction with

toolkit. Tablets enable better and closer interactions between advisors and clients by enhancing access and availability, providing an attractive and much more highly functional alternative to traditional communication channels such as email and texting. Beyond this, they

customer relationship management (CRM) capabilities. Evidencing

1 “Forecast: Tablets and Ultramobiles, Worldwide, 2011-2017, 1Q13 Update,” Gartner, 20 March 2013.

the growing importance of tablets within advisor platforms, 36% of wealth management survey respondents are investing in tablet-based CRM solutions for advisor workstations, making it the top customer relationship management priority.

According to EY’s wealth management study, more than 75%

�������������������������������������������

of a single 360-degree view of the customer are critical to enable these initiatives, and reduce the administrative overhead associated with the onboarding and servicing of clients. Advances in client onboarding can also reduce the risk of inaccuracy, minimize customer frustration due to repeatedly providing the same information and improve client activity awareness on the part of customer service representatives. The evolution of other business

capture, video and enhanced customer analytics, will further reduce friction in today’s onboarding processes by providing greater integration and visibility.

3

Context-based servicesThe volume, velocity and variety of client data available continue to grow at an astounding pace. As a result, clients in today’s market have growing expectations regarding the level of product and service

this data to provide context-based services that meet or exceed their clients’ expectations will have an edge in the marketplace, as data can provide valuable micro and macro insight into individual clients and

identify opportunities and product management recommendations

Additionally, personalization of content, reports and alerts can drive more valuable interactions with clients.

Social collaborationSocial media continues to evolve rapidly and is proving to be a game changer in many industries. With more than one million websites having some integration with Facebook, the staggering growth of

safe to say that social media can no longer be ignored. Consumers are charting the path with social media and the evolution of the crowdsourced referral model is impacting purchasing habits across

organizations to challenge traditional methods of communication and interaction. Social media moves quickly and missteps can snowball into brand disasters; examples of this occur on an almost weekly

Clients are better informed and more technically capable than ever before, as advances in consumer technology and the 24/7 news cycle enable seamless and almost limitless access to markets information.

basis. In the rush to react, many organizations have stumbled, some very publicly. A well-balanced social media strategy should take into account the overall goals of the program, governance, risk and compliance. Driving brand awareness and a servicing model in popular social media destinations are evolving opportunities to connect with clients wherever they may be, and clients will expect it. The emergence of video collaboration tools is starting to drive the next level of potential interactions and will further complicate how

ConclusionThe rapid pace of change, the adoption of new technology and evolving consumer expectations place new demands on today’s

solution must take this into account without losing focus on the creation of consistent client collaboration across channels. Responding to these demands is imperative, but it is not without risk. Today’s and tomorrow’s wealth managers must carefully balance client expectations of features and functions against the imperatives of data privacy, security, regulation and client trust. A comprehensive approach to managing the strategic, executory and operational risk is a key to success in this space. EY is working closely with the world’s

About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

Ernst & Young LLP is a client-serving member firm of Ernst & Young Global Limited operating in the US.

EY is a leader in serving the global financial services marketplace Nearly 35,000 EY financial services professionals around the world provide integrated assurance, tax, transaction and advisory services to our asset management, banking, capital markets and insurance clients. In the Americas, EY is the only public accounting organization with a separate business unit dedicated to the financial services marketplace. Created in 2000, the Americas Financial Services Office today includes more than 6,500 professionals at member firms in over 50 locations throughout the US, the Caribbean and Latin America.

EY professionals in our financial services practices worldwide align with key global industry groups, including EY’s Global Asset Management Center, Global Banking & Capital Markets Center, Global Insurance Center and Global Private Equity Center, which act as hubs for sharing industry-focused knowledge on current and emerging trends and regulations in order to help our clients address key issues. Our practitioners span many disciplines and provide a well-rounded understanding of business issues and challenges, as well as integrated services to our clients.

With a global presence and industry-focused advice, EY’s financial services professionals provide high-quality assurance, tax, transaction and advisory services, including operations, process improvement, risk and technology, to financial services companies worldwide.

© 2013 Ernst & Young LLP. All Rights Reserved.

SCORE No. CK0696 1309-1137453 NY ED NoneThis material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

ey.com

EY | Assurance | Tax | Transactions | Advisory

ContactsJuan Carlos LopezExecutive Director Financial Services, Ernst & Young LLP Miami, FL +1 305 415 1708 juan.lopez@ey.com

Jason LambertsonSenior Manager Financial Services, Ernst & Young LLP Charlotte, NC +1 704 350 9151 jason.lambertson@ey.com

Scott PonderManager Financial Services, Ernst & Young LLP Atlanta, GA +1 404 817 5063 scott.ponder@ey.com