Wealth managers are confusing themselves by relying on too many technology systems, according to new research from Avaloq, a global leader in digital banking solutions and wealth management technology.

Avaloq’s study, conducted among over 400 wealth managers globally, found that one in three (33%) wealth managers in the UK use 10 or more different technology systems to perform their day-to-day tasks, while the vast majority (86%) rely on four or more. This is accompanied by operational inefficiencies, with one third (33%) of UK wealth managers stating they struggle to find the information they need from their current technology systems, and over two fifths viewing their technology as outdated (44%).

UK managers have more fragmented tech set-ups than their global counterparts. Around the world, around a quarter (24%) of wealth managers worldwide are using ten or more systems, though a similar proportion (87%) rely on four or more. Almost two fifths (38%) of global wealth managers say they struggle to find the information they need, while a similar amount view their systems as outdated (40%).

When asked to identify their biggest technology pain points, wealth managers across the UK and worldwide highlighted issues linked to the use of too many systems, including technology taking too long to learn (38% UK; 38% global), problems with inconsistent availability of data across platforms (53% UK; 47% global), and the need to use too many systems to complete a single task (53% UK; 48% global). Others highlighted unnecessary functionalities (49% UK; 41% global) and unclear or unintuitive navigation (53% UK; 50% global).

Suman Rao, Managing Director for the UK and Ireland at Avaloq, says: “Wealth managers in the UK and around the world are relying on too many different, outdated technology systems and that is creating a lot of extra work. 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.”