–> This is a pre-event interview in the run-up to the Leaders in Finance Wealth Event on March 7, 2024.
Jeroen: Thanks a lot, Frank Schrijver, for taking the time. You are a partner at Roland Berger, and I am very much looking forward to having you at the Leaders in Finance Wealth event in 2024. First of all, could you introduce yourself?
Frank: Yes, of course. I am Frank Schrijver, and as you said, partner for the Financial Services industry at Roland Berger. I started my professional career at ABN AMRO bank in 2002, where I worked for six years. After this I made the transition to Roland Berger. Throughout my career, I have always been active in the banking landscape, with a particular focus on wealth management.
Jeroen: Have you been working mainly in the Netherlands, or also internationally?
Frank: I have also worked internationally. Given the inherently international nature of the banking environment, particularly in wealth management, there is almost always an international component. Our primary focus in this context is on Europe.
Jeroen: Right. What is it that you like about your job? What are you particularly interested in?
Frank: As a strategy consultant, the most interesting aspect is being at the forefront of the market developments. In addition to this, I have the opportunity to support clients in setting their ambitions, defining their winning propositions and supporting them in navigating the ever-changing environment. Collaborating with clients to determine what works best for them and how to continuously evolve into something better is not only very interesting, but also a lot a fun.
Jeroen: Right, makes total sense to me. You said an ‘ever-changing’ environment, right? What are in your view the largest challenges for the financial service industry related to wealth management at the moment?
Frank: I believe that wealth management is at the forefront of structural transformations, requiring all players to reconsider their value propositions, business, and operating models. This will undoubtedly be challenging, but this will also present numerous opportunities. Looking at the key transformations, on the one hand, it involves the shift to a digital-first approach, providing scalability. However, wealth managers also needs to ensure data-driven advice and solutions to continue delivering added value with their wealth management proposition. Secondly, it is about democratizing investment management, making it more attractive and accessible for all individuals. This creates opportunities considering the rise in wealth not only for the very wealthy clients but also for the affluent and high-net-worth individual base. There is also a shift where people become more responsible for building up their wealth , managing pensions over time themselves, rather than relying on government or company/industry driven pension schemes. Finally, it is important to look at it from a sustainability perspective, in which wealth management can or should play a significant role in supporting society to become more sustainable over time. This involves facilitating transparency regarding the impact of investment solutions and instruments provided to clients.
Jeroen: On that last point, do you see that there is a lot of interest in working on this? Or is it mainly marketing so far?
Frank: I believe that, from the investment management perspective, sustainability is already embedded in the overall landscape, particularly in the European context. There are two sides to this. On one hand, European wealth managers are considering sustainability in defining their investment strategies and selecting instrument. However, on the other hand, transparency regarding the impact of these decisions is still limited and not shared with customers. The regulations aimed at creating more transparency could, in the end, be a blessing in disguise. These regulations will support wealth managers in gaining a better understanding of factors such as the carbon emissions intensity and the path to zero for companies in which they invest. This, in turn, should enable them to make even better investment decisions and create the opportunity to share this valuable information with customers.
Jeroen: You kind of described the three different major trends or challenges. You already mentioned some of the opportunities, are we missing any opportunities here for the industry?
Frank: I have identified technology as a key enabler for wealth managers to facilitate transformation. So far, it has been challenging to elevate the proposition or the current added value to a level that is financially attractive or affordable for individuals with less wealth. I believe that the availability of new technologies and solutions enables a more scalable and, therefore, cost-effective service. This makes certain wealth manager propositions, such as financial planning and access to diverse asset classes, accessible to a larger group of customers. Therefore, it becomes interesting for wealth management to consider a more holistic approach and cater to a broader range of clients, rather than focusing solely on those with more than 1 million in assets. In the future, the emphasis should shift more towards clients’ needs and less on the existence of a business or earnings model.
Jeroen: When discussing technology, the focus is frequently on introducing innovations to enhance efficiency and effectiveness, creating processes that customers prefer. However, is this discussion also about digitalization? In other words, is there still a lot of work when it comes to digitalizing things in wealth management, in your view?
Frank: Yes, indeed. With advancements in data analytics solutions, including generative AI, it becomes possible to semi-automate or structure certain processes that may have lower volumes and are less comparable to others. In private banking, where there are more exceptions and differences between clients, such as the types of products they use or their investment strategies, finding a common denominator has traditionally been challenging when using rule-based approaches, especially when volumes are limited. However, new technologies enable the digitalization of such processes. Additionally, these technologies allow for personalized digital or online interactions, addressing a past limitation where online interactions lacked a personal touch aligned with customer needs. Many are already experiencing the benefits of generative AI in creating engaging and personal interactions, even if not in a direct face-to-face setting.
Jeroen: Right, that is a great example. Do you have anything important to add to this pre-event interview?
Frank: I find it interesting and valuable to consider multiple perspectives on wealth management. One could focus on the products the clients could or should acquire, or on the interaction methods, such as digital purse and hybrid advisory. An equally intriguing aspect is how clients manage their asset allocation. Reflecting on what is logical and should be logical over time in terms of optimizing wealth—balancing investments in securities, fixed income, and alternative assets—offers opportunities for simplification and streamlining. Tokenization, for instance, holds the potential to enhance liquidity in certain asset classes that are currently less liquid. This innovation could be particularly interesting and beneficial for society, especially when considering sustainability efforts that demand new investments. If we could link and use the wealth of individuals to fund the transition, this could be a tremendous opportunity for the industry to contribute positively.
Jeroen: That is great; very optimistic as well. I like how you link it back to society as a whole. Then the last questions from my end. Is there anything that you are particularly interested in, in an event like this?
Frank: I always look forward to engage in discussions about the future of wealth management and exchanging ideas and thoughts about the challenges. It is energizing to be inspired, as it should provide us with the motivation to tackle the necessary tasks that will lead us to the desired future.
Jeroen: Wonderful! Thanks a lot, Frank Schrijver, partner at Roland Berger, for taking the time to talk to Leaders in Finance. As I said in the beginning, we are very much looking forward to having you on the 7th of March 2024 at the Leaders in Finance Future of Wealth Management event. Thank you so much for taking the time!
Frank: Thanks!
–> This is a pre-event interview in the run-up to the Leaders in Finance Wealth Event on March 7, 2024.