Wealth managers are relying on an increasingly complex patchwork of technology systems, creating inefficiencies and hindering client service, according to new research from Avaloq.
The survey of more than 400 wealth managers worldwide found that a third of UK respondents use 10 or more technology systems in their daily work, while the vast majority (86%) rely on at least four.
This fragmentation appears to be straining day-to-day operations, with one in three UK wealth managers saying they struggle to locate the information they need, and almost half (44%) viewing their systems as outdated.
The UK picture is more fragmented than the global average. Internationally, around a quarter (24%) of wealth managers use 10 or more systems, although reliance on four or more is broadly similar at 87%.
Almost two in five global respondents (38%) reported difficulty finding the right information, while 40% said their systems were outdated.
The study also highlights a series of shared frustrations linked to technology sprawl.
More than a third of UK and global wealth managers (38%) say their systems take too long to learn.
Over half of UK respondents (53%) report inconsistent data availability across platforms, compared with 47% globally.
AI trust gap exists between UK wealth managers and clients
The same proportion of UK managers (53%) say they must use too many systems to complete a single task, slightly higher than the global figure of 48%.
Other concerns include unnecessary functionalities (49% in the UK and 41% globally) and unclear or unintuitive navigation (53% UK vs 50% global).
Suman Rao, managing director for the UK and Ireland at Avaloq, said the findings underline the operational strain caused by fragmented technology estates.
“Wealth managers in the UK and around the world are relying on too many different, outdated technology systems and that is creating a lot of extra work,” she said.
“These inefficiencies impact wealth managers’ ability to serve clients efficiently. They need to adopt a more unified approach focused on one integrated system that can streamline processes, improve data access and support them in their day-to-day roles.
“By consolidating technology into a single platform, wealth managers can reduce complexity and gain a clearer view of client data.
“This will not only improve efficiency and accuracy but also free up valuable time to focus on building stronger relationships and delivering a better client experience.”
