Key Takeaways from American Bankers Association Wealth Management & Trust Conference

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Last week, Liveoak Technologies attended the American Bankers Association Wealth Management and Trust conference in New Orleans. The theme of the industry event was “Capitalize on Change” which was interpreted as moving forward and embracing the challenges from the advances in Fintech to regulatory developments and a range of changing dynamics that are transforming the Wealth Management and Trust industry.

The conference attendees were bankingwealth management folks both from the broker/dealer and trust side of the business. We gained some great insight from talking with several Wealth and Trust professionals. We also heard the term “WealthTech” frequently used and this term follows in the footsteps of buzzwords like Fintech and Insuretech.

Regulation 9 is one subject that came up several times during conversations. Regulation 9 in a nutshell is a rule that permits national banks to open and operate trust departments in-house and function as fiduciaries. Regulation 9 allows national banks to manage and administrate investment-related activities. They can register stocks, bonds and other securities and act as trustees for them.

Regulation 9 creates big opportunities for national banks, especially given the market opportunities coming down the pipeline. The timing could not be better to nail down a digital onboarding strategy that opens up additional doorways for customers to remotely complete new accounts, paperwork and transactions.

During the conference, we also had the opportunity to listen to the challenges that Wealth Management and Trust professionals are experiencing. The two challenges that we heard multiple times are the processes around transition/re-papering and remote, customer annual reviews. We were encouraged and excited to hear that Liveoak’s solution has the capability to make a meaningful impact on their customer experience and bottom line.

During the Wealthtech luncheon, we had the pleasure of presenting how Liveoak’s digital video conferencing and onboarding solution solves problems and creates opportunities for banks, specifically with remote paperwork and customer onboarding.

During the presentation, we shared how Liveoak’s goal is to provide a digital customer journey that recreates the experience of meeting in person. This includes the experience of a person walking into a branch or meeting privately in an office. When it comes to laying eyes on customers, helping customers complete complex forms and paperwork, obtaining signatures, verifying identity, saving records for audit purposes and KYC, all of these steps can be completed remotely by using Liveoak.

We know that customers drop off as much as 70% of the time when asked to walk themselves through forms/onboarding processes online. We also know that complex onboarding processes still require human interaction. Therefore, Liveoak was built around the ability for representatives and customers to video conference or chat while simultaneously sharing the same screen and having the capability to fill out paperwork together, sign documents, upload/share files and verify/confirm identity. Over the past decade, financial professionals have cobbled together tools that individually provide solutions; however today, Liveoak provides a single, secure solution for banking and financial services professionals.

Below are a few facts that were covered in our WealthTech presentation:

Problems with existing paper strategies for onboarding new customers in Wealth Management and Trust

  • Enterprises are spending $200 Billion annually on old paperwork processes
  • Automating complex transactions leads to customer drop-off rates as high as 70%
  • In branch interaction is required when customer’s identity needs to be verified, a signature is required or when problems arise from a failed automated process

Market opportunities

  • Baby boomers will transfer $32 trillion to their heirs, averaging $660 billion annually
  • There is $470 billion in untapped insurance premiums
  • 70% of customers prefer virtual advice

All in all, the conference was insightful and it was inspiring to meet so many Wealth Management and Trust professionals along with the folks at American Bankers Association (ABA). There is so much opportunity as we move forward into what has been called “the great wealth transfer from baby boomers to millennials” and it is extremely exciting to be a part of it.

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