Pivotal CRM - Wealth Management

W H I T E
P A P E R
Essentials of CRM for Wealth Management
Empower Advisors with Client-Centric Tools

Executive Summary
A monumental shift is currently underway in wealth management, as transactional
“brokers” make the transition to being true “advisors” and the service model
transforms from a static traditional approach to a dynamic one driven by client
needs. To make this change about more than just terminology, however, wealth
management firms need to embrace client-centric strategies at a profound
level, re-engineering their processes, embedding consistent best practices
within their systems, and empowering advisors to build deeper, more enduring
client relationships.

In this white paper, learn how wealth management firms can use client relationship
management (CRM) strategies and technology to build relationships as trusted
advisors, maximize share of wallet, and increase productivity, contributing to
top-line and bottom-line revenues while also gaining a wealth of usable insight.

The Changing Face assets in fee-based accounts steadily grows,4 the wealth
management business is becoming more product-
of Wealth Management agnostic and relationship-based.

The wealth management industry is undergoing change This combination of changes is transforming the industry.
on multiple fronts. The transition brings with it a wealth of opportunity, but
it also necessitates some fundamental rethinking of
Many of the forces of change in the industry are the way wealth managers do business. The changing
overwhelmingly favorable. Both the number of wealthy market demands a shift in focus to relationship-building,
individuals worldwide and the value of their financial client retention, growth in share of wallet, and more
assets are increasing: in 2006, 9.5 million people globally “advisory” interactions and positioning, but this is not
held more than US$1 million in assets—an 8.3% increase a transformation that can occur successfully without
over the previous year—and the wealth of high-net-worth considered intervention and support. In effect, it amounts
individuals (HNWI), which totaled US$37.2 trillion in 2006, to a whole new service model, and one that most wealth
is expected to balloon to $51.6 trillion by 2011. Part of this management firms don’t currently have the technology or
growth comes from emerging markets, but it is supported process infrastructure to support.
by healthy growth in developed economies; in the US, for
example, the HNWI population expanded by 9.4% in 2006.1 A recent report from Capgemini and Merrill Lynch put the
problem thus:
The potential client base for wealth managers, therefore,
is expanding. At the same time, its attributes and needs As the needs of HNWIs become increasingly complex, and
are changing. As the baby boom generation retires, their the choice of providers grows, wealth management firms
focus is shifting to managing their finances in retirement are realizing that the quality of their service models is closely
and the eventual transfer tied to their continued success. The relationship between
of wealth. Meanwhile, the an advisor and client is built on trust, integrity and results.
wealth of a new generation But that is only part of the equation. For that relationship
As the percentage of to work effectively, it must be backed by a quality service
of tech-savvy “millennials” is
client assets in fee-based growing—there are now more model. Leading firms understand this and are investing in
accounts continues to grow, people under 35 than over 54 platforms that give their advisors the best tools to serve
the interests of their clients and allow them to adjust to the
the wealth management making a six-digit household
ever-changing marketplace.5
business is becoming income,2 and the collective
more product-agnostic and income of “Generation Y” is In other words, it is time for wealth management firms to
expected to surpass that of embrace the new service model and ensure they have the
relationship-based. baby boomers by more than tools to support it.
$500 billion within 10 years.3

Age and life stage are not the only client attributes that are
in transition: clients are also becoming more sophisticated
Embrace the New Model
and demanding investors, with escalating expectations of The new model for wealth management is client-centric
their wealth managers in terms of both service level and and service-oriented. It is founded on a strategic
product range. Investors have more wealth, but also more approach to extending the duration and value of the
choice, and the increasing ease with which they can move client relationship. It is a transition from transactional
their business to other firms presents new challenges for engagements to advisory ones, driven by client needs.6
wealth managers.
If this does not sound new, it is because wealth
Concurrent with these changes in client base size and management firms have over the past several years
attributes, there have been internal changes within the begun positioning themselves as client-centric and
wealth management industry. The move to a fee-based their employees as “trusted advisors,” recognizing
business model is fundamentally changing the dynamics the transition that is underway. Unfortunately, this
of wealth management. As the percentage of client

4. Bienfang, Matthew. “The New Age Retail Advisor: Tools to
Support Tomorrow’s Field Force” (PowerPoint presentation).
TowerGroup. 2006.
1. Capgemini & Merrill Lynch, “World Wealth Report 2007.”
5. Capgemini & Merrill Lynch, p. 2.
2. Center for Media Research. “6.2 Million Young-With-Money
Households.” URL: http://www.centerformediaresearch.com/ 6. PricewaterhouseCoopers, “Unprecedented Opportunities,
cfmr_brief.cfm?fnl=070301. Plan Your Approach: Global Private Banking/Wealth
Management Survey 2007: Executive Summary.”
3. Van Dyke, James, & Garascia, Jean M. “Think You
Know Generation Y? Think Again.” American Banker,
August 10, 2007.

Pivotal CRM | White Paper 1

transformation has in many firms been in name and how their systems will need to be adapted to fit the new
marketing only, as studies indicate the underlying business reality. Just as the wealth management industry
changes required to support such assertions have has undergone rapid change in recent years, the CRM
simply not taken place. landscape has also evolved, and today’s CRM systems
are better equipped to support the wealth management
Not surprisingly, however, lip service alone is not industry’s specific needs under this new business model.
succeeding in delivering the results wealth management
firms are seeking, and market research suggests that Whether your firm is searching for its first CRM system
at last, leading firms are beginning to put in place the or is looking to better support a client-centric business
processes and systems required to effectively internalize model with a new or existing CRM solution, this white
and execute on a client-centric strategy. paper will help you understand what wealth management
firms can achieve today using the right CRM system to
So what does this new model look like? It begins with support a customer-centric strategy.
a commitment to getting to know and understand the
client and his or her needs,
beginning at the point of Really Know Your Client
prospecting, before the
As wealth managers look All wealth managers are familiar with “Know Your
individual even becomes a
to embrace a client-driven client. It is about gathering
Customer” (KYC) forms and regulations, but it is
business model, they must perhaps indicative of their weak familiarity with their
comprehensive information
clients that collection of such information has to be
consider whether their CRM about the prospective client
mandated by regulators.
systems are up to the task. and using this information to
more effectively engage them Research indicates that client relationship managers at
from the outset, winning their wealth management firms have quite high opinions of
business through demonstrated relevance, understanding, their customer intimacy, with 80% asserting that they have
and affinity. Once the business is won, it is about achieved the coveted status of “trusted advisor” with their
developing a thorough understanding of client needs clients. Yet other data doesn’t appear to support this
and interests and using this knowledge to develop their confidence. Almost 50% of the same group regards their
portfolio—an approach that stands in marked contrast to knowledge of clients’ extended family issues as limited to
the traditional approach of assigning clients to moderate, and only 41% of wealth management business
pre-determined investment strategies and products managers feel their advisors have good knowledge in this
based on static one-dimensional classes depending area. In fact, an alarming 25% of advisors acknowledge
on AUM or risk profile alone. Most importantly, a client- that they are not even familiar with their clients’ overall
centric engagement model involves a commitment to financial goals. As PricewaterhouseCoopers notes in
building and managing a strong client relationship over its summary of these survey results, “Very substantial
the long term, deepening and expanding the relationship progress needs to be made before [advisors] can
rather than assigning an investment strategy and then truthfully claim the attributes of being trusted advisors.”7
stepping back.
As with any relationship, trust begins with getting to know
The technological framework for achieving this new model each other. Sadly, far too many wealth management
is customer relationship management (CRM). As a wealth firms limit this knowledge to a basic understanding of
management firm’s core client-facing front-office system, assets and stated risk tolerance. This information is
the right CRM system and configuration is integral to simply not enough to engage the client in a compelling
collecting the prospect and client intelligence that drives advisory capacity.
this more personalized engagement, implementing the
processes that ensure effective relationship management, Using a CRM system, wealth management firms can
and leveraging this knowledge and these processes to ensure that collection of client intelligence is a systematic
maximize client value and loyalty. Consequently, CRM process woven into every interaction, even before the
constitutes much more than just a software purchase to individual becomes a client. Beginning with the prospect
a wealth management firm—it is the foundation of their database, the CRM system can be used to collect and
move to a client-centric, advisory business strategy. build out meaningful prospect records. While at first
only limited details about a prospect may be available,
While many wealth management firms already have recording them within the system enables the firm to
some form of CRM system in place, most of these take action on building out the profile, researching
were implemented when the firm was operating under prospects and aggregating information about them to
what is rapidly becoming an obsolete service model. It create a more useful picture—one that will help win their
is therefore essential that as wealth managers look to
embrace the new model, they consider whether their CRM
systems are up to the task, and at a minimum consider
7. Ibid., p. 44.


business. Further research on specific prospects can strategy that is driven by unique client needs, not pre-
even be assigned as a task within some CRM systems. determined categories. The result is a more satisfying and
Marketing-list contacts can also be entered into the personalized experience for the client that positions
system to create a single, integrated database of targets the firm in a much more “advisory” capacity.
and prospects. Advanced
CRM querying tools can then A good CRM system will enable a wealth management
Advisors need a deep, be used by the marketing or firm to create a truly deep, holistic view of the client.
holistic view of clients and business development team This view should include not just demographic and risk-
to segment the database into tolerance information, but a complete view of the client’s
their overall value to the firm.
meaningful groups, allowing household and extended family relationships, as well as
highly personalized and connections to other relevant parties, such as custodians,
relevant messaging to be delivered to them. For example, lawyers, trustees, CPAs, and other clients. The profile
the firm might segment its prospect database by asset should make it easy to record and understand client
size, but also by geography, profession, source of wealth, objectives, life stage, and positions, as well as interests
interest areas, or other factors. Many CRM systems both personal and financial. On the financial front, the
include marketing automation components that allow profile should offer both at-a-glance and in-depth views of
such campaigns to be created or sent directly within the client accounts and holdings, incorporating both internal
CRM system, personalizing content such as name and and external data to allow a comprehensive view of the
address using the CRM profile. More advanced systems firm’s share of wallet. This perspective should also convey
will allow for sophisticated conditional content, replacing the full extent of the client’s relationship with the rest of the
subject lines and entire graphics or paragraphs of text, for firm—for example, the wealth management unit should
example, based on the recipient profile. be aware that the client’s business has a loan with the
firm’s commercial lending arm. Furthermore, the profile
As each interaction with a prospect occurs—whether it’s should indicate the client’s influence over other accounts
a phone call, e-mail, marketing campaign, online enquiry, and should track any referrals attributable to the client. All
or in-person interaction, and whether initiated by the of this information, when brought together, paints a truer
prospect or the firm—it can be documented within the picture of the client’s overall value to the firm.
CRM system, creating a comprehensive record of the
prospect’s history with the firm and response to various As important as building out the client profile is, it is
approaches. In addition to tracking the effectiveness of equally important to recognize that client information and
different marketing and sales techniques, this allows the relationships aren’t static. Client profiles should never be
wealth management firm to build out the prospect profile viewed as “completed,” because there is always more
further with each interaction and gradually develop more to learn, and client priorities and interests shift over time.
advanced segmentation and behavioral targeting. When CRM must be integrated into the company culture and
a new or existing prospect becomes a lead through a interactions to the extent that each interaction is seen
marketing-campaign response or other expression of as a new opportunity to learn more about the client or to
interest, many CRM systems allow firms to pre-qualify the validate and update the information already in the system.
lead according to custom criteria and automatically route A vast database of stale information can be as injurious
qualified leads to the appropriate employee for follow-up to the relationship as too little information, so efforts must
according to territory, product, AUM, specialization, or an be continually made to keep this valuable data fresh
advanced combination of factors. This ensures that skilled and accurate. With a good CRM system, prompts and
advisors’ time is not wasted on the wrong prospects and reminders to obtain or update various pieces of data can
that hot leads don’t go cold while waiting to be sent to be woven into the automated workflows and interactions,
the right person, helping ensure the firm doesn’t lose making data collection and hygiene an integrated part of
business to faster-acting competitors. Furthermore, it your client-centric processes.
ensures wealth managers are kept focused on the right
Even if all this client information exists in your firm today,
accounts. This increases overall productivity and reduces
it is worth considering where it resides. A staggering
the cost and length of the sales cycle.
amount of this information may rest with individual
Developing rich prospect profiles gives advisors an advisors—whether in their printed or electronic files,
advantage from the very first interaction with a prospect, written notes, or heads. This generates risk for the firm:
enabling them to tailor and personalize their approach should the files be lost or the advisor leave the firm, the
and inspire trust and confidence from the outset. client knowledge—in fact, the entire relationship—can
When the prospect becomes a client, the advisor is be jeopardized. Storing all client data centrally not only
also in a good position to engage the client and flesh creates a form of “corporate memory” that persists
out their profile to create a more comprehensive view. over time; it also helps the client relationship transcend
Unlike traditional “wealth band”–based approaches, individuals and accrue to the firm more broadly, as any
this enables the advisor to take a truly informed and employee in any location can give the client equally
considered approach and propose an investment informed and consistent service.


Of utmost importance is how easy a wealth management the most nimble and tech-proficient advisor. And when
firm’s client data is to access and use. If client data is productivity is critical, this simply isn’t acceptable.
dispersed across multiple files and systems, it can be
virtually impossible for an advisor to get a comprehensive To solve this problem, many wealth management firms
picture without hours of research and reporting—let alone are looking to integrate as many systems and information
to use it in responding to a client or management inquiry sources as possible into a single intuitive interface
on the spot. Without a 360-degree client view, risk and for their advisors. This gives them the best of both
opportunity may be equally difficult to identify. That’s why worlds: the “best of breed” tools and information from
as many wealth management firms work to implement a the best internal and third-party sources, all with a single
client-centric business model, their key area of focus is on access point.
the advisor workstation.
The most natural system to use as a unifying hub in this
capacity is the CRM system. CRM systems are designed
Make the Advisor Desktop to be the single source of aggregated client information,
and they make excellent portals for integrating client-
a Relationship Hub facing tools and data. Wealth management firms should
first and foremost look for CRM systems that incorporate
Advisors are at the front lines of client-relationship
the broadest set of strong features—encompassing
building, and their ability to cultivate these relationships
marketing, sales, and service—to eliminate unnecessary
and make them more profitable is increasingly dictated by
point systems, but they should also seek systems
the information and tools at their disposal. The faster they
with high flexibility to allow for integration of additional
can access and understand
systems and incorporation of data from third parties or
the data they need, the
CRM systems are the other specialized internal systems. Some CRM systems
better—and more efficiently—
fill this role particularly well, incorporating external
most natural solutions to they can serve clients. This
applications or links in context—for example, one-click
use as unifying hubs for translates not only into higher
access to a map program or ticker information within
client satisfaction and more
advisor desktops. client confidence; it also
the client file to display client-related directions or stock
information. Again, flexibility is vital here, to allow the
directly affects an advisor’s
wealth management firm to deliver a system that best
productivity and ability to manage their book of business.
fits its advisors’ work styles and confers a competitive
An efficient advisor can manage more assets and more
advantage. Systems the firm might wish to integrate into
clients, and as the number of new clients and size of their
the CRM hub could include portfolio accounting systems,
wealth is growing faster than the pool of available skilled
analytics programs, and trade execution platforms, for
financial advisors, the resulting resource crunch is going
example, and external data types to incorporate might
to increasingly affect wealth management firms’ ability to
include custodial data, market data, financial headlines,
take advantage of growth opportunities.8 The situation is
ticker information, and more.
already shockingly dire: one-third of advisors feel that they
do not get enough time to service clients, and advisors on Given the ubiquity of Microsoft Office and Outlook and
average report that contact with existing clients is limited the important roles these programs play in advisors’ daily
to 30% of their overall time.9 As their workloads increase, activities, CRM systems that offer pre-built integration
one can only imagine what the impact could be on the between the CRM system and these programs can be
level of service advisors are able to deliver to clients. of immense value to wealth management firms and can
really cut down on the number of different applications
Equipping financial advisors to be as effective and
firms need to integrate and advisors need to open.
productive as possible is therefore of paramount
CRM systems offering Microsoft Outlook integration, for
importance to wealth management firms. By bringing
example, may allow e-mails to be seamlessly created and
the best tools and information possible to the advisor
sent to clients or colleagues directly within the system,
desktop, they empower advisors to perform at a higher
automatically appending them to the client record for
level, delivering better service levels while managing a
clear communication tracking. Similarly, Microsoft Office
larger book of business.
integration can, for example, allow letters to be drafted
One concern in furnishing advisors with a wide range of using Microsoft Word and mail-merged with CRM contact
tools and information sources, however, is ensuring that data, all without leaving the CRM system. Another
they are usable, not overwhelming. No matter how great Microsoft application that is growing in importance and
the tools and data, switching between multiple systems utility for financial services firms is Microsoft SharePoint;
to accomplish a task or checking multiple data sources built-in integration between it and the CRM system allows
to get a comprehensive picture is sure to slow down even a broad range of files and documents to be stored in an
organized fashion along with client records. For example,
a scan of a hand-written KYC form or signed Investment
Policy Statement could be easily stored in a SharePoint

8. Ibid.

9. Ibid.

library associated with a specific client and available right firm establishes a client-centric infrastructure that always
there in the CRM system. Pre-built integrations with these keeps the client front of mind.
intuitive and familiar tools cut down on training time and
dramatically limit the need to switch between programs,
saving time and increasing efficiency. Become a Trusted Advisor
As noted earlier, troubling discrepancies exist between
As clients’ product interests have expanded and wealth
advisors’ perceptions of themselves as trusted
management firms have moved to more product-agnostic
advisors and their actual client relationships. Gaps in
fee-based models, the complex range of products with
client knowledge are part of the problem, but wealth
which advisors deal has expanded exponentially, making
management firms also need to do a better job of
it hard for advisors to hold in-depth knowledge of all
ensuring client intelligence is used to its full advantage
available product options. Integrating product information
and relationships are nurtured in a systematic and
into the CRM system is thus a great way to provide
consistent manner. When it comes to precious client
advisors with easy access to rich product information
relationships, nothing should be left to chance. By using
when and where they need it: in the context of client
their CRM system strategically, wealth management firms
interactions. By storing product information within the
can go from reactive to proactive, ensuring that client
CRM system, advisors can instantly call up the facts and
information is leveraged to the firm’s advantage at every
features they need to position
turn and that the client relationship continues to evolve
offerings to clients and
Service—not investment prospects. Some of the more
and deepen over time.
performance—is the advanced systems will allow It may surprise some to learn that service—not investment
top reason clients cite flexible product components performance—is the top reason clients cite for switching
for switching wealth and features to be dynamically wealth management firms.10 Some firms may never learn
combined to fit client needs. that this is the reason for a client’s departure, or may
management firms.
Some CRM solutions also only learn it too late, because they do not engage with
allow competitive intelligence their clients unless something goes wrong, assuming that
to be stored within the system so that it is easily if a client’s assets are performing within an acceptable
accessible at the point of sale. This enables the advisor to range, all is well. In fact, many firms’ approach seems
proactively compare proposed products with competitive to condone this kind of “hands-off” client relationship
offerings the client might be considering or overcome any management: almost 50% of wealth management firms
objections, highlighting their product’s differentiators and do not conduct annual independent reviews of advisors’
comparative advantages. In some cases this could rule client relationships.11
out the competition right from the outset, dramatically
shortening sales cycles. Some CRM systems also allow A good CRM system enables advisors to implement a
for automated literature fulfillment, accelerating follow-up solid relationship plan composed of frequent goal-based
to clients with product documentation and materials. touch-points throughout the year. This can be as simple
as an informal check-in call or as complex as a multi-
In addition to integrating internal and external systems and stakeholder strategy meeting. Life isn’t static and neither
data sources, the CRM system should give advisors a rich are clients: by tracking evolving goals, interests, and life
assortment of productivity tools, including personalized stages, the advisor can ensure that client information
dashboards, lists of daily scheduled tasks, links to clients doesn’t grow stale and that any new developments and
they need to call that day, alerts, and reporting tools. The opportunities are recognized as early as possible. The
system should also enable advisors to quickly find any overarching goal is to ensure the advisor understands the
information they need, such as a list of all clients with a client’s evolving wealth management goals and priorities
certain product interest or hobby, using sophisticated and is in the right place at the right time to position
built-in querying tools. the firm’s financial expertise, products, and services,
systematically growing share of wallet. Not only will this
What should always be kept in mind in configuring the
enable the wealth management firm to effectively and
“turbo-charged” advisor desktop, of course, is the end
seamlessly up-sell and cross-sell products and services
goal of making advisors more effective, informed, and
in response to new client interests and life events, but
efficient in serving clients. Integration of client-centric
it will continue to deepen the relationship cumulatively
tools and data into a centralized CRM hub helps advisors
over time and enhance the perception of the firm as a
cut down on time spent hunting for information, entering
duplicate data into multiple systems, switching between
programs, or completing laborious administrative tasks,
ultimately increasing the percentage of time they can 10. Ibid.
spend on high-value client-facing activities. Furthermore,
by bringing all these tools and details together in the 11. Ibid.
context of the client relationship management system, the


trusted business advisor. Research indicates that there the same discipline as new clients. What differentiates
is ample opportunity for wealth management firms to this kind of sale, however, is that is enriched by the deep
increase their effectiveness here—only 50% of firms hold knowledge of the client that has been built up over time,
more than 40% of their clients’ investable assets under allowing the advisor to time and match pitches to client
management. Analyst firm TowerGroup also notes that needs, increasing receptivity and conversion rates by
since investors “on average maintain more than 2.5 being more customer-centric.
brokerage relationships and place less than 65% of their
investable assets with their primary broker, firms have
some significant opportunities to increase their share of Collaborate for Success
wallet with customers.”12 CRM systems aren’t just data sources; they’re
collaboration platforms. Today’s clients want immediate
After each call or meeting, the
service and faster results, and having a single person
CRM system should make
Complex multi-stakeholder servicing a client can create a bottleneck and slow
it easy to enter notes that
processes such as client on- down response. Similarly, within the average wealth
clearly flag all products and
management firm, there are many different skill-sets and
boarding can be significantly services discussed and the
areas of specialization, such as retirement planning or
accelerated by workflows. client’s reaction, preventing
tax planning, all of which may be of benefit to the client. It
the client from being offered
is not always most efficient or in the best interests of the
the same items multiple times
client to have a single staff member attempt to meet all
from multiple sources. Any follow-up tasks, whether for
of a client’s needs, and it can ultimately limit the products
the advisor or other colleagues, should be easy to assign
and services offered to a client.
within the system for guaranteed follow-though, even if
they are scheduled for six months or two years down the CRM systems should facilitate a team-based advisory
road. Any new referrals generated through the interaction approach. The relationship can still be headed up by a
should be easy to enter as leads for guaranteed follow-up lead advisor or customer relationship manager—in fact,
and should clearly note the source. the client need only ever deal with this one person, if
appropriate—but it should allow the strategic involvement
Similarly, the system should enable the firm to get
of specialist consultants and support staff wherever they
proactive about client retention. Shockingly, a full 50%
can provide value or make the process more efficient. The
of wealth management firms don’t have a defined
goal is to allow efficient behind-the-scenes collaboration
retention process.13 A CRM relationship plan is the first
between different area specialists to help move intricate
step to correcting this, as regular client interactions can
processes forward faster, while also providing the pooled
help identify and remedy client dissatisfaction before it
intelligence to allow every team member to benefit from
becomes severe.
the information gathered by the others. Where multiple
The CRM system can also be used to increase retention team members engage directly with the account, this
rates in other ways. For example, the system should be empowers all team members to serve clients in an
capable of issuing advisor alerts when major changes equally informed and professional manner, helping build
occur in client accounts, ensuring the advisor can act the relationship while also allowing seamless continuity
immediately. In addition, workflow functionality should of service in the event of employee illness, vacation,
enable the firm to implement a consistent retention or departure. This also assists in elevating the client
strategy whereby a defined team and set of steps are set relationship to the firm level, not just the individual advisor.
in motion the moment an account is identified as being
Collaboration is facilitated by CRM workflows and action
at risk, rather than leaving retention to ad-hoc individual
plans that allow complex processes to be broken down
efforts. This can significantly increase the chance of
into defined tasks that can be assigned through the
retaining client business.
system to the appropriate individual and performed
Relationship plans embedded in the CRM system ensure either sequentially or concurrently, as appropriate.
that as with the initial client acquisition process, the steps This streamlines activities and drives them forward
to build and maintain the client relationship and derive faster, ultimately increasing overall productivity
value from it through ongoing revenue-generation are and lowering overhead. Complex multi-stakeholder
consistent, methodical, and strategic, taking relationship processes such as client on-boarding, for example,
management from reactive to proactive. Up-selling and can be significantly accelerated by using workflows to
cross-selling to existing clients can then be pursued with immediately route documents for approvals and drive
each step forward efficiently.

Another dimension of collaboration that is often
12. Bienfang, Matthew. “Top 10 Business Drivers, Strategic underdeveloped in wealth management firms is that of
Responses, and IT Initiatives for Brokerage & Wealth
collaboration between the wealth management division
Management.” TowerGroup, December 2007, p. 9.

13. PricewaterhouseCoopers.


and other lines of business within a broader financial
services firm. As TowerGroup notes:
Comply with Client and
Regulator Expectations
Regulatory compliance is an ever-evolving challenge for
The broker workstation is becoming the hub from which a all financial services businesses, and client expectations
financial services enterprise can represent all of its business for data security and privacy are continually mounting.
lines and from which brokers can become trusted advisors A CRM system can help wealth management firms meet
representing the entire financial institution rather than just
the demands of both regulators and clients by providing
a single business line. At a minimum these increasingly
sound security controls and thorough records.
complex enterprises want to be able to represent the client
relationship in a holistic fashion so that the true value of both A good CRM system will allow wealth management firms
the client and the enterprise can be represented regardless to control access to sensitive client data by restricting
of whether the advisor has business responsibility across
it on a “need-to-know” basis to those employees with
the enterprise.14
appropriate authorization. This balances the desire to
CRM systems should provide this holistic client view share client information for better-informed service with
and make it easy for leads that come in to one area of the need to adequately protect client privacy. The firm
the firm to be assigned to another area of the firm, such should be able to restrict access to sensitive information
as from wealth management to commercial lending, for while still allowing access to non-sensitive information
follow-up or pursuit—without the risk of having the client that helps employees help clients. Some systems will also
fall through the cracks or be treated like a stranger by allow wealth management firms to create personalized
another unit. This highlights the value of having a shared privacy statements for clients, helping reassure them that
CRM system across different areas of the firm. The idea their privacy expectations are being met.
of a global, cross-business CRM system is prohibitive to While CRM systems don’t replace the need for other
some wealth management firms because they recognize compliance standards and solutions, they can assist in
that there are significant differences in the kinds of compliance on a variety of levels. A good CRM system
data and processes used in will allow wealth management firms to manage mandatory
different geographies and and optional disclosures for client accounts and should
A good CRM system business lines within financial help automate the completion of key documents such as
allows executives to services firms. However, some KYC forms and Investment Policy Statements. It will also
perform more proactive flexible CRM solutions now provide a comprehensive audit trail for all information
allow uniquely tailored CRM
sales management. entered, accessed, and changed within the system. CRM
systems—complete with their records can also be very useful as documentation of client
own workflows, data views, interactions and communications, especially if e-mails are
and processes—to coexist on a unified platform. This stored within the system through Outlook integration.
kind of system can accommodate process differences
among discrete wealth management units such as private As TowerGroup notes, regulatory compliance and client-
banking and retail brokerage, but also among completely centric initiatives often overlap: “Implementing real-time
different lines of business, such as investment banking workflow and rules engines coupled with business
and mutual fund wholesaling. Such systems allow wealth analytics will offer an unparalleled ability to improve
management firms and other financial units to maintain business process and meet regulatory obligations at
their unique processes and implementations while the same time.”15 CRM workflow automation and audit
opening up a whole realm of possibility for collaboration trails can ensure both consistent protection of client data
across geographies and business lines—for example, and effective supervision of the sales process to identify
a wealth management division may learn in the course potential areas of risk and fraud—as well as conformity
of relationship calls that an HNWI client who is a CEO is with best practices and a consistent client experience.
seeking to take her company public and could refer the
client to the firm’s investment banking arm as a lead. Since new regulations are a continual concern, the
Such collaboration serves to further deepen the client’s greatest advantage a CRM system can provide to a
relationship with the firm and the wealth management wealth management firm is the flexibility to adapt to
firm’s advisory value to the client. change and accommodate new processes and data
collection needs easily and cost-effectively.

14. Bienfang, Matthew. “Broker Workstations: Greasepaint for the 15. Bienfang, 2007, p. 10.
Many Faces of Retail Brokerage.” TowerGroup, April 2005, p. 1.


Increase Management Insight providing more concrete evidence of employee interaction
with clients and prospects. With real-time insight into
With all marketing, sales, and service activity being business performance, executives can make real-time
tracked and managed within the CRM system, wealth adjustments to business strategy, becoming more agile
management executives have the perfect management and precise.
platform. At any time, they can see in the CRM system
exactly what stage a given client opportunity is at, without
having to hunt down advisors for status updates. This Go Mobile:
allows management to precisely calculate the sales
pipeline for revenue forecasting. They can also see which
Productivity Anytime, Anywhere
clients are happy, which ones have issues, and which Wealth management firms’ clients are increasingly mobile,
ones are growing or contracting in profitability. and more and more, they expect advisors to match their
mobility, doing business anywhere from on-site at their
A good CRM system allows executives to perform home or workplace to the coffee shop on the corner.
more proactive sales management. They can identify Wealth management professionals can no longer afford to
which advisors are responsible for bringing in the most be chained to their desks, especially as their competitors
revenues and which are possibly in need of more go mobile.
training or support. They can see where share of wallet is
growing—and where it is shrinking. They can see which Mobile and wireless capabilities are thus important CRM-
deals or clients are at risk or and take action to ameliorate system considerations for wealth management firms.
the situation before it is too late. They can also see which Employees need to be able to access and contribute to
clients are most profitable or present the greatest growth CRM data from laptops and handheld devices, anytime,
opportunities and ensure advisors are focusing adequate anywhere—whether they are referring to portfolio details
efforts on developing deeper relationships with them. before an on-site meeting or entering call reports while
on a plane. Luckily, many CRM systems offer mobile
CRM systems can also present an invaluable source of and wireless features that allow users to access or add
decision support. With good reporting features, a CRM CRM data from the device of their choice. With access to
system should allow an executive to report on almost any a broadband Internet connection sometimes uncertain,
facet of sales performance, client-base composition, and another feature offered by some CRM systems that is of
return on investment. They can use CRM data to perform significant value to wealth management users is the ability
win/loss analysis to see which clients are being won and to operate with complete CRM functionality and data while
what their common attributes are, using this to refine the in a fully disconnected mode, synchronizing with the main
firm’s processes and segmentation as well as to spot new system when reconnected—ensuring optimal productivity
opportunities and trends. They can also use CRM data to and performance at all times, regardless of connectivity.
realign teams and territories to play on individual strengths
and to allocate budgets and other resources—essential at
a time when many firms lack a sufficient number of highly Conclusion:
experienced advisors.
A Wealth of Opportunity
A good CRM system gives managers and executives the
With expanding worldwide wealth and a growing potential
opportunity to closely monitor what is going on within
client base, wealth management firms are fortunate
the firm without overloading employees with requests for
to have exciting growth opportunities today and in
updates and reports. It also provides a valuable record of
employee actions and client communications that helps
avoid reliance on subjective reports and interpretations,

Keeping Pace with Change: The Need for Flexibility
As we all know, the only constant is change. With market-structure shifts, regulatory changes, competitive pressures, and
other forces continuously reshaping the wealth management landscape, you can count on the fact that your firm will need to
adapt in order to deal with the plethora of changes in your business environment. To continue to be effective high performers in
today’s business climate, wealth management firms have to be agile and adaptive. Supporting your business processes with
technology can make your company faster and more productive today—but you must also ensure it won’t hinder you when you
need to respond rapidly to tomorrow’s changes in the market and regulatory environment.
Whatever CRM system you choose, you should ensure it is capable not only of molding to the way you currently do business,
but also of adapting to change—quickly and cost-effectively. No matter how robust or powerful your CRM system, it is useless
if it ties you to outdated processes and impedes your business agility. Be sure to select a flexible, easily customizable CRM
system that can keep pace with your business in a dynamic business environment.


the years ahead. But as this growth begins to slow, client-centric service model and seeking to implement
especially in developed countries, firms are going to more rigorous processes for building and retaining client
be looking to their competitors’ client bases to acquire relationships. To really put this idea into play and move
new business, which means competition is going to it beyond lip service, making it consistent and scalable
be fierce. Even in today’s climate, the push to expand across the firm, wealth managers need to embed these
share of wallet of existing clients—a top priority for most processes within a robust, flexible CRM system.
wealth management CEOs16—implies that there will be
winners and losers: for each percentage gained by one Fortunately, today’s CRM systems have much to offer
firm, another is losing ground. Similarly, as the market wealth management firms. There are now CRM systems
expands, wealth management firms are under pressure to designed specifically for financial services—even
grow at the same rate as the market or better if they are expressly for wealth management—offering a better fit
to retain market share, which is placing increasing strain for the industry without complex or costly customization.
on their systems and resources. As competing wealth There are also CRM options on the market that are more
management firms vie for high-value clients, the choice flexible and adaptable than ever before, allowing firms
offered to clients is going to be unprecedented, and the to model their unique processes rather than try to fit a
barriers to switching will keep getting lower. pre-programmed mold that may not work for their firm
or advisors. Now more than ever, it is possible to situate
Since wealth management clients cite satisfaction with CRM as the hub of an advanced and empowering advisor
service as their top reason for staying with—or leaving— desktop that provides all the tools and information an
their financial advisors, it is no surprise that strategic- advisor needs to efficiently and effectively initiate, nurture,
thinking wealth management firms are embracing a new and grow loyal, profitable client relationships. As wealth
management firms seek to compete and capitalize on the
opportunities presented by the changing face of global

16. PricewaterhouseCoopers.


wealth, their ability to leverage CRM technology to execute Using Pivotal CRM, wealth management firms can
on client-centric strategies will be a key differentiator. fully integrate marketing, sales, and service functions
for increased efficiency and effectiveness, obtaining
a complete view of the client so users from all areas
Pivotal CRM of the company can offer informed, personalized client
for Wealth Management interactions. Pivotal CRM saves time and increases
productivity by automating and facilitating workflows
Pivotal CRM for Wealth Management is a complete, end- for important multi-stakeholder processes such as
to-end client relationship management suite that offers client on-boarding and KYC completion. It also provides
exceptional functionality tailored to the needs of wealth visibility into complex networks of affiliation and influence,
management firms. Pivotal CRM for Wealth Management allowing wealth management firms to more successfully
was designed to help wealth management firms embrace track referrals, measure full client value, and identify
dynamic client relationship models while capitalizing new opportunities.
on the efficiencies of automation and centralized client
information and opportunity management. Pivotal CRM for Wealth Management is complemented
by the full Pivotal CRM for Financial Services suite, which
Pivotal CRM for Wealth Management mirrors the business also includes solutions for investment banking and
processes and data models commonly used by private institutional brokerage, commercial banking, institutional
banks, retail brokers, mass-affluent firms, and other asset management, and mutual fund wholesaling,
wealth management organizations. Its flexible platform allowing diversified firms to easily accommodate the
allows it to be seamlessly connected to the entire firm, unique processes and information needs of their different
including back-office financial systems. With an industry- lines of business while maintaining an integrated platform.
specific client relationship management system, wealth
management firms can accelerate the return on their With wealth management firms around the world using
CRM investment and lower their total cost of ownership. Pivotal CRM solutions, CDC Software has proven time and
time again its ability to meet the needs of the industry. The
Pivotal CRM for Wealth Management enables financial Pivotal CRM approach ensures a faster implementation
advisors to develop deep insight into their clients' needs with a lower total cost of ownership by delivering financial
and preferences, accompanied by tools that help them services solutions on the scalable and flexible Microsoft®
automate multi-step processes, track performance, and platform, which supports easy customization, integration,
collaborate better as a team. and deployment. Wealth management firms can rapidly
and cost-effectively adapt Pivotal CRM to meet changing
compliance and operational demands and grow with their
business—meeting their business needs today, tomorrow,
and in the future. To learn more, please call us at
1-877-PIVOTAL or visit www.pivotal.com/financialservices.

For more information or a complete list of our worldwide offices, please visit www.pivotal.com.
Copyright © CDC Software 2010. All rights reserved.
The CDC Software logo and Pivotal CRM logo are registered trademarks and/or trademarks of CDC Software.

Pivotal CRM - Wealth Management

Recommended

Recommended

More Related Content

What's hot

What's hot (7)

Similar to Pivotal CRM - Wealth Management

Similar to Pivotal CRM - Wealth Management (20)

More from Pivotal CRM

More from Pivotal CRM (20)

Recently uploaded

Recently uploaded (20)

Pivotal CRM - Wealth Management