20-May-02
Historically a private client fund manager was able to get by with, 'we only just under performed the FTSE, and by the way, how are the Labradors?'
Fewer and fewer clients will accept this customer service model. Private investors, courtesy of the Internet, are better equipped to interrogate their relationship managers and they are more and more inclined to do so. The customer service model must ensure the Relationship Manager (RM) is empowered to provide intelligent responses and information on the client's position. Whether investment decisions were made by the RM or at a centric level, wealth management organisations must be seen to be providing a bespoke service; if the relationship manager is seen not to have their finger on the pulse, client loyalty is jeopardised.
As a side issue, the introduction of more stringent regulation to counter money laundering means RMs now require far more information about their clients and it is prudent to use CRM technology to standardise the account opening process.
Today, RMs require a broader range of information to service the client and manage the relationship. If directors really want to empower their RMs, provide them with an secure CRM system that is easy to navigate, responsive, possibly web enabled with a browser interface providing the required information. Examples of information include:
1.Personal information including family structure, date of birth, national insurance number, scanned passports & signatures are basics. 2.Contact information on the client, such as multiple addresses, telephone numbers and contact details are essential, if your technology doesn't ensure reports can be sent to 4 different addresses in 2 languages your service level is not competitive. 3.Know your client information including preferences, hobbies, and other pertinent information is useful in cultivating a good rapport. 4.Financial information includes bank account details, tax status, client worth, client spend, source of funds, investment objectives & mandates, constraints, risk models, exposure, expectations and the current investment position. 5.Investment information needs to include near real time online valuation, performance analysis, cash account enquiries, income projections and pending orders.
All these need to be viewed at a global level, with the ability to dynamically structure families such as joining husband, wife and descendants portfolios, and then 'drilling' down to the individual, portfolio, and ultimately the underlying asset.
Advanced warning of who is likely to call them can help RMs create a proactive image. Caller identity is one extreme but specialised wealth service systems will ensure that news on investments held by their clients is filtered through to the RMs in near real time so they can react to announcements such as profits warnings.
Understanding customer constraints is essential, if a client objects to adult content material for example, does that mean they also object to the distributors of that material such as satellite and cable television services? A wealth orientated front office system will enable the Investment Manager (IM) to ensure that when rebalancing 1 or 50,000 portfolios these constraints are considered, even if the security is a constituent in a fund.
Following changes to CGT regulations & introduction of tapering, analysis of clients tax status is a more detailed occupation. Information on a whole host of capital gains tax information is required and should be maintained centrally so it can be used in portfolio modelling. The RM will also need to know what relationships the client has with other areas within their organisation, as well as external relationships with accountants or tax advisers. RM's can be seen to being adding significant expert value when they can articulate how they have worked to avoid tax.
Such an application should also archive all communication with the client, in some institutions this extends to recorded telephone conversations but should include notes, scanned letters, emails etc. A history of all client contact / activity needs to be available, and an inherent diary system which allows the RM's to schedule activities against a given client is essential in maintaining the service level.
Odyssey understands that every wealth operation employs a unique business model. Odyssey solutions are used extensively to support portfolio management and CRM in wealth businesses ranging from HNWI to mass affluent. The @dvisor product enables an organisation to radically increase perceived levels of service and added value.
At the same time this technology enables improved operational efficiency; essential if you want to double your client base and not have to gear up the team. The implementation of this best of breed systems approach also has the effect of reducing reliance on legacy back office applications, which in effect extends their shelf life.