One might conclude that asset and wealth managers are on a cost-cutting spree, ranking “improving efficiency” as a top business priority by a wide margin and across all regions (79% of responses globally). However, it is important to note that improved efficiency extends beyond the internal benefits of providing the ability to streamline processes, reduce waste and manage operational risk. It also contributes to an enhanced client experience.
- 3 out of 4
managers chose “improve efficiency” as a top priority
Enhancing the Client Experience
Managers have good reason to focus on building a lean, efficient organization in today’s extremely competitive environment. Many firms are re-engineering their operations as they look to manage an increasingly complex business environment. However, the benefits of efficiency initiatives such as outsourcing, automation and the use of advanced technology are not limited to streamlined processes and improved operational risk management.
The client is also integral to improved efficiency. For example, enhanced accuracy, timeliness and responsiveness are key to a quality client experience, in addition to facilitating smooth internal operations. Increased access to the right data not only powers waste control and feeds the firm’s risk management systems; it also provides valuable insights on the changing needs of clients. Overall, improved efficiency frees up scarce resources to enable the firm to invest in internal operations and an enhanced client experience.
Building a lean firm
Attracting New Business
Consistent with the need to improve efficiency, approximately half of respondents also chose “enhance distribution channels” and “expand product offering” as top priorities of their firms (51% and 44%). Both offer the potential to attract new business through expanded wallet share with existing clients, taking on new clients or both.
Generating Profitable Growth
At the end of the day, improved efficiency holds the opportunity for managers to build a lean organization. This produces more than internal benefits. Improved efficiency also provides the ability to invest in a unique client value proposition that, together with internal payback, will generate profitable growth for the firm.
Investing in unique capabilities
Improving efficiency is Gluskin Sheff’s main priority, not only for our operating infrastructure but also to deliver a positive impact on the client experience, from onboarding to maintaining and servicing clients.
- Justin Ashley, Vice-President, Investment Finance, Gluskin Sheff + Associates Inc., Canada
It is important to look critically at everything that touches our clients and ask: ‘Are we doing it as well as we can, or is there a better way and, if there is, let's do it.’ That's against the backdrop of a lot of changes that we’ve made over the past 12 to 15 months.
- Denys Calvin, Vice-President and Chief Operating Officer, Nexus Investment Management, Canada
