Why Wealth Managers Struggle to Meet Client Needs – Survey

Nick Parmee

1 August 2008

A report released today by San Francisco based NorthStar Systems International, a provider of wealth management software to financial services institutions, suggests the vast majority of wealth management firms are unable to service affluent clients effectively. The report also indicates that lack of automated processes could be the main reason firms are unable to provide best-in-class service to every client every time.

The NorthStar Wealth Manager Challenge Quiz Report documents that firms are only able to provide the holistic and personalised service required by clients "on occasion" or less. NorthStar says that at these service levels, firms are acting more like traditional financial advisors than true wealth managers.

Using an online quiz, NorthStar polled 5,500 wealth management contacts worldwide about how frequently they were able to offer best-in-class processes and client service. It received responses from business, technology and operations executives as well as financial advisors. Respondents spanned all major segments of the wealth management industry including banks, broker-dealers, insurance companies, family offices, registered independent advisors and asset managers.

Critical process weaknesses for all firms include client reporting, investment policy statements, client profiles, 360-degree client views and overall integrated workflows.