In a new white paper that will be unveiled at 15th Annual Wraps, Platforms & Masterfunds Conference in the Hunter Valley next week, Bravura director for product and strategy Darren Stevens issues a stark warning to platform providers.
The Australian wealth management industry has been slow to innovate compared to other Australian sectors, Mr Stevens said – and it is hampered by a complex web of legacy technology.
Looking at 2020 and beyond, platform providers need to be aware of five future trends that will have a major impact on wealth management – the first of which is "mass and hyper personalisation", he said.
"Yesterday, the buzzwords were member engagement. Today, the focus is on member experience, which is all about personalising the customer journey.
"In five years’ time, this trend will have evolved further still into an expectation from customers for mass personalisation, which will involve the extensive customisation of products, services and advice down to the individual level," he said.
The onus will be on the leading platform providers to utilise big data, predictive analytics and "social listening" to develop a deep and intimate knowledge of each customer, he added.
As part of the white paper, Mr Stevens envisaged a scenario by 2020 in which one of the incumbent providers decides to "break away from the pack" and invest heavily in achieving "true mass personalisation".
"By creating a point of differentiation so highly valued by customers, such a move would almost certainly deliver the provider an unbeatable competitive edge in the marketplace," he said.
"Further, as the years roll by, it would become increasingly difficult, if not impossible, for those providers still relying on legacy technology and bolt-on solutions to catch up."
In order to cope with such a scenario, platform providers and their technology providers will have to work out how to deliver highly personalised experiences in a efficient and competitive way, Mr Stevens said.
"Platforms of the future must be developed within an agile framework and feature modern architecture capable of supporting big data and analytics, as well as real-time, responsive integration," he said.
To find out more about the Bravura white paper, titled Future proofing amid rapid technological change – which way now for platform providers?, register for the 15th Annual Wraps, Platforms & Masterfunds Conference in the Hunter Valley. Final tickets available.
