Wealth managers are finally waking up to the fact their competitors are winning more business through better use of client relationship management systems, according to the chief executive of software provider Wealth Dynamix.
Speaking to FTAdviser, Gary Linieres said that only in the last couple of years have the dual forces of regulatory scrutiny and technological change really combined to make advisers sit up and take notice.
“People only do things when they have to, so it’s only now that they’re losing business to the likes of Nutmeg and needing to get the regulator off their back, that the conversation changes from ‘why should I do this’ or ‘how do I do this’.”
When he started the business three and a half years ago Mr Linieres said it was an uphill struggle to get wealth managers to appreciate the need for CRM systems, with many advisers reticent to give over their heard-earned client relationships to a centralised computer programme.
Since then the firm has won a few major clients itself, with bespoke CRM systems created for Ruffer, Brewin Dolphin and Charles Stanley.
Christopher Aldous, head of distribution at Charles Stanley, said that the firm switched to the Wealth Dynamix system last year and have now embedded it in most processes.
“We embraced WDX wholeheartedly, after getting all the back office done we recently rolled it out to the front end intermediary sales team where it’s been particularly useful for communication with clients.”
Mr Linieres previously argued that while the industry has embraced technology to build out accounting and portfolio management systems, only recently have firms started to apply the same rigorous, digital approach to client management.
This is partly down to the Financial Conduct Authority “putting its money where its mouth is” on suitability and record keeping, he commented, and partly because of the generational shift in the use of technology by the general public.
“Younger people have embraced digital and online ways of doing things, while even older generations are being forced to do so in order to access things. This means that there’s more acceptance of building central databases of clients and organising their information so that it can actually be useful.”
Mr Linieres explained that as well as satisfying the FCA, this means advisers can leverage their client data to grow their businesses and use “cool technology” to win new clients.
peter.walker@ft.com
