Adjust talent management strategies to transform workforce
Overcome data analytics challenges to unlock revenue potential along the entire client life cycle
Develop differentiated and focused value propositions along key competencies
10+%-points
Cost-income ratio reduction potential
~20%
Revenue upside potential
~40%
Change of employee skill profiles
Transforming the workforce
Mastering data analytics
Focus on key competencies
Develop differentiated and focused value propositions along key competencies
10+%-points
Cost-income ratio reduction potential
Focus on key competencies
Differentiated value propositions and business models achieve up to double pre-tax margins – Wealth Managers need to sharpen their pencils.
What to do:
Stand out through a differentiated and well-articulated value proposition by focussing on key competencies, e.g. by re-evaluating the physical footprint, re-focusing the delivery model, and / or streamlining the (in-house) product shelf .
Prepare to face off disruptive competitors, e.g. brokers for investment services, by considering own aggregator / platform models or working closely with them as part of a broader Wealth Management ecosystem
Overcome data analytics challenges to unlock revenue potential along the entire client life cycle
~20%
Revenue upside potential
Mastering data analytics
Data analytics has not yet lived up to its potential – Wealth Managers need to overcome challenges to realise the full revenue opportunity.
What to do:
Build the foundation for advanced analytics by enhancing data governance and quality controls; avoid costly re-platforming exercises and instead leverage readily available data aggregation software
Embrace third-party solutions to close the capability gap; integrating third party data with own CRM and other client data will allow for accelerated opportunity realisation; third party data providers and aggregators are often way ahead of banks, e.g. combining hundreds of data sources to identify new leads / improve services to existing clients will become the new norm
Embed data analytics into the organisational culture and day-to-day business processes, most notably the advisor desktop, to ensure acceptance by users
Adjust talent management strategies to transform workforce
~40%
Change of employee skill profiles
Transforming the workforce
Wealth Managers must participate in the war for talent, particularly for highly sought-after data scientists and “hunters”– external partnerships become more important to fully close the skill gaps.
What to do:
Treat this as a top 3 CEO priority; firms running this effort out of the HR department will likely fail
Accelerate learning and training efforts to upgrade existing employees’ skillsets, particularly related to rising data analytics demands
Sharpen the talent value proposition to accommodate the preferences of new and transforming talent pools, particularly data scientists
Seek external partnerships to tap into new talent pools beyond financial services to access the required skillsets, particularly for “hunters”