Wealth Managers Focus on Reassuring Clients During Economic Downturn

Spurred by the financial crisis, wealth managers are reevaluating the dynamics of the industry and the resulting implications for their products, advisers and clients, according to a recent report from Celent. The Boston-based consultancy reports that firms are placing considerable emphasis on communicating with clients more frequently to review their financial situations, confirm the wisdom of their asset allocations and current holdings, and convince them to get back into the market.

All types of financial services firms are focusing their efforts on reassuring clients that if they remain with the firm and adviser, they are "quite likely to maintain a healthy financial position throughout their lives," Celent said in the report, noting that this is where wealth management systems -- more specifically, financial planning vendor solutions -- come into the picture. Previously financial planning solutions stopped at the asset-allocation level. Today's solutions, however, provide advisers and end clients with full support for the entire advisory process, according to Celent.

In the meantime, the consulting firm points out, the global financial crisis will affect how wealth management firms buy technology. Firms will pursue implementations that provide both tactical and strategic IT benefits, and a clear return on investment will be imperative to back up any technology spending, Celent asserts. Further, now more than ever, a modular approach to technology deployments leveraging open architecture will be followed, allowing firms to add functionalities as necessary.