COVID-19 Pandemic has raised uncertainty and unpredictability in the world and more precisely on the future of FinTech industry.
As the world has been dealing with the COVID-19 pandemic infections and outcomes, economic, financial and social changes became more apparent globally.
Today, the pandemic is presenting challenges to Asset and Wealth Management, including asset managers, fund managers, hedge funds, and family offices, as well as investment banks, financial companies and brokerage firms.
One of the effects of the pandemic is the sudden switch in working from office to remotely from home. Banks and financial firms faced difficulties with their pre-existing work arrangement and had to enhance security protocols and regulations to protect data and portfolios of their clients.
On the other hand, the pandemic has forced companies to plan for longer-term considerations that include digital acceleration and workforce transformation, in order to meet the changing expectations of investors, companies, banks and firms. In that sense, client interactions and business workflows are becoming fully digitalized, and processes, procedures and controls are getting performed digitally, although physical presence is needed at times for certain functions.
Collaborative software has changed the way banks and firms work, and more flexible models emerged for sharing resources between teams and markets.
Within the pandemic, virtual centralization steps were taken rather than physical interactions and presence. By accelerating their digital transformation and using a flexible wealth management operating model, wealth management firms will succeed more during the crisis.
While the period of pandemic is prolonged until an effective vaccine will be developed, the most important consideration is for wealth management firms to respond to their clients’ needs and portfolios in a new environment of numerous changes, in order to protect themselves from losing market share.