4 Ways Asset and Wealth Managers Could Use Open Banking

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4 Ways Asset And Wealth Managers Could Use Open
Banking

• Copyright by Jmrinfotech.com

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• It's no secret that Open Banking and Flexcube
  universal banking have been around for a while.
  Still, now that it's being seriously considered,
  it's no longer just wishful thinking about how it
  may affect advisors and wealth managers in the
  future.

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• It's a significant shift in how digital may
  benefit from Open Banking in the future. We're
  seeing Asset Managers take stock of how this fits
  into their digital strategy.
• Some examples of how Open Banking may improve the
  digital experience

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1. Simplifying Onboarding/Viability

• At the beginning of the interaction between an
  advisor and a client, fact-finding/onboarding is
  essential. Even though the procedure of Flexcube
  implementation is lengthy, it is necessary and
  does consume a significant amount of time. The
  onboarding procedure might be more efficient and
  less labor-intensive if customers agree to
  connect their bank accounts.

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• Rather than manually entering all of the
  information, the customer may simply check the
  data obtained using the new API (Application
  Programming Interface). Automating much of the
  fact-finding process would allow financial
  advisers to concentrate on value-added
  activities, such as learning more about their
  clients' aims and ambitions and leveraging
  digital technology to help them come up with
  innovative solutions through interactive tools
  and hypotheticals.

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2. Dynamic Financial Planning

• Consumers' purchasing habits, savings, income,
  and excess cash may be analyzed using banking
  data. A real-time collection of this data might
  shift the way financial planning is offered from
  a one-time, static plan to a more dynamic process
  that is automatically optimized when changes are
  noticed in the client's data. In response, the
  plan's risk or results are altered. For example,
  if a client's salary rises, their retirement cash
  flow plan might be automatically updated. Unless
  they interacted 'manually,' an Adviser would not
  have learned this information.

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3. Financial wellbeing

• Pension funds alone can't keep up with the
  growing demand from individual investors for more
  control over the ethics of their investment
  portfolios. This is also a motivator for
  enterprises to provide relevant investors with
  the knowledge and resources such as digital
  portfolio modeling approaches via online
  learning. Well-being seems to be a major emphasis
  for Advisers these days.

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• There are several ways to leverage Flexcube to
  help clients make better financial choices by
  providing real-world case studies and assistance.
  There may be shifts in the type of advice given
  based on changing transaction data, such as when
  a customer becomes better at saving and
  ultimately leads to more complex investments,
  such as investment advice after they have built
  sufficient capital to move higher in the risk
  band or achieve the outcome set that they
  require. This information is all hidden without
  the tools to assist investors.

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4. Personalised product recommendations for
wellbeing

• Advisers should provide personalized product
  suggestions and Oracle Flexcube if they have
  access to a customer's transactional data, which
  would reveal a wide range of variables, including
  income, tax, and debt levels. For example,
  current items may be made accessible at the right
  moment, or the product could be tailored to the
  customer's needs.

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Conclusion

• Consequently, the open banking environment allows
  an array of UX elements to create the greatest
  possible experience and journey that really
  defines the asset manager or advisory bran. When
  it comes to investment in technology (like Oracle
  Flexcube 14.x), connectivity, and data analysis,
  how do asset management and financial advisors
  perceive the long-term benefits of Open Banking?
  That is the big question.

Copyright by Jmrinfotech.com