WHAT: The banking industry is navigating a challenging economic landscape marked by high interest rates and shifting regulations. Following recent bank failures, many regional financial institutions (FIs) have offered higher-yielding interest rates to retain customers, straining their financial performance. FIs are also facing decreasing net interest margins (NIM), compounded by regulatory changes that have reduced permissible late fees, cutting annual incoming fees by $10 billion. These factors are placing significant pressure on banks' traditional revenue streams.
WHY: As FIs navigate challenging economic conditions, growing wealth management is expected to be a strategic focus for regional FIs, according to Alvarez & Marsal’s 'U.S. Wealth Management: State of the Industry' report. Expanding into wealth management services presents opportunities to:
· Diversify revenue streams,
· Deepen customer relationships, and
· Meet growing demands for integrated financial services.
A recent McKinsey report indicates increasing consumer demand for a one-stop shop that integrates banking and wealth management services. Among surveyed wealth clients, 47% now prefer holistic financial advice, representing a 60% increase from 2018.
Achieving core systems interoperability is crucial in this endeavor. FIs that harness the power of their data to provide customized experiences are more likely to acquire new customers and increase revenue. By unifying core systems data, FIs can offer a comprehensive "one wealth" view, integrating brokerage, trust, and RIA data within digital banking for a seamless user experience and enhanced client engagement.
WHO: Wealth Access CEO David Benskin, who has more than 25 years of experience in wealth management and data integration technology, is available to share insights on how FIs can bolster wealth management services and adopt a holistic data approach to expand growth potential. Benskin can discuss:
· How this strategic shift enables FIs to deepen customer relationships, unlock new revenue streams, and strengthen competitive advantage
· Practical strategies for banks to harness their data for personalized customer experiences
· The role of core systems interoperability in creating a unified wealth management offering
CONTACT: For more information or to speak with David Benskin, contact Gabriela Lumpkin at gabriela@williammills.com.
About Wealth Access
Wealth Access is an enterprise customer data insights platform that works with financial services’ existing books and records to enrich and unify data, generating deep insights that power hyper-personalized banking experiences. By intelligently unifying records across multiple systems, Wealth Access creates living balance sheets that enable service teams to see each client’s complete financial story and work across business lines to improve customer loyalty and drive higher revenue. As a result of its innovative enterprise-class solutions, Wealth Access today supports more than 200 customers with over $571 billion in assets on the company’s platform, including several of the largest banks in America.