For Lamont, change management is top of mind and mission is critical for firms.
“Over 75% of the firms that F2 Strategy surveyed last month underwent at least one major vendor change within their tech stack in 2023. We anticipate a similar volume of change in 2024,” he said. “The challenge facing wealth management firms lies in managing the entire change process — from selecting the right vendor to building the appropriate implementation plan. There are numerous hurdles to overcome just to reach the starting point of using a new tool.”
Lamont said given the multitude of fintech applications available and the competing priorities within wealth firms, there is significant risk to be managed within these projects.
“It begs the question, which projects should even be considered? In 2023, 70% of firms concentrated on data-related initiatives and reported positive outcomes, ranging from improved internal workflows to enhanced client and advisor reporting,” Lamont said. “There is great value in establishing a data strategy (and platform, and governance model) and once established, it needs to be continuously invested in to ensure it evolves and matures as firms’ business grows and the demand for more data-rich technology emerges.”
Lamont added that AI stands out as particularly data-rich, and F2 anticipates that the use cases for AI will become clearer in 2024.
“How fintechs and wealth firms collaborate to harness the power of the technology for improved operational efficiency, enhanced business management and more personalized content will be fascinating to watch,” he said. “We’ve seen early successes that will inspire more to engage in the opportunity.”