A Better Client Experience Goes Beyond One Wealth: Part 1

The Allure of “One Wealth” and Its Underlying Rationale

A concept dubbed “One Wealth” has gained traction among some firms and industry consultants in recent years. This approach advocates consolidating investment services divisions and trust services divisions, traditionally operated as separate entities within banks and credit unions, into a unified wealth management offering.

The driving force behind this proposition is well-intentioned to enhance the client experience by eliminating siloed operations and fostering a seamless delivery of financial advisory services. Proponents argue that this integration could mitigate fragmentation, enabling a holistic approach that caters to the multifaceted needs of clients. If your organization is considering a pivot to the One Wealth model, the “next steps” outlined in part two of this article can provide guidance before moving forward.

The Inherent Complexities: Overcoming Structural Disparities

While the One Wealth concept holds merit in theory, its practical implementation is fraught with challenges stemming from the intrinsic differences between investment services and trust services divisions. Aspects such as regulations, compliance protocols, operational processes, staff expertise, compensation structures, product offerings, organizational cultures and historical biases present formidable obstacles to a successful merger.

Investment services divisions and trust services divisions have evolved independently, each with its own set of rules, processes, procedures and client-facing dynamics, all shaped by regulatory differences which must be adhered to throughout any such undertaking. Attempting to combine these disparate entities into a cohesive whole poses significant hurdles that cannot be overlooked.

Bridging the Divide: Fostering Collaboration and Synergy

Recognizing the difficulties associated with a complete amalgamation, some have merely shifted their focus towards fostering collaboration and synergy between the two divisions. This approach envisions a scenario where each entity retains its distinct identity while working in tandem, with clearly defined roles and responsibilities, to deliver a seamless client experience.

Under this model, the inherent compensation disparities and historical biases such as the perception of trust services as the preeminent “wealth division” and investment services as a product-centric operation would need to be addressed and reconciled. This alone is a significant undertaking which hasn’t moved for decades. Effective communication and a shared understanding of each division’s strengths would be paramount to ensure a harmonious coexistence.

The Enterprise-Wide Solution: Transcending Divisional Boundaries

While the One Wealth concept and its collaborative counterpart hold merit, a more comprehensive approach may be necessary to truly elevate the client experience. Rather than focusing solely on the integration or cooperation of these two divisions in isolation, financial institutions should consider an enterprise-wide strategy that leverages the collective strengths of all their offerings.

Clients’ lives are unpredictable and their financial needs are multifaceted, often encompassing personal loans, mortgages, savings accounts, commercial lending, digital services, and, yes, wealth management and more. By recognizing that clients require the entirety of an institution’s capabilities, a holistic “One Enterprise” mindset can be cultivated, transcending divisional boundaries and fostering a cohesive, client-life-centric approach.

The Path Forward: A Customized Strategic Approach

Embarking on an enterprise-wide transformation is a formidable undertaking that demands a tailored strategic approach. Every financial institution is unique, with distinct components, talent, technologies, product offerings, cultural nuances, leadership philosophies and strategic directives from boards of directors.

To initiate such a journey, unwavering support and guidance from top leadership are imperative, as the road ahead would be arduous and fraught with challenges. Institutions must conduct a candid self-assessment, evaluating their readiness, resource availability and the potential impact of such an endeavor on their overall success.

On the Way to Part 2

Having explored the strategic rationale behind the “One Wealth” model and the complexities involved in integrating investment and trust services, we now turn our attention to the practical implementation of these strategies. Part two of this article will deliver actionable steps to overcome cultural resistance and operational hurdles, ensuring a successful transformation towards a client-life-centric approach. We will discuss the importance of leadership alignment, leveraging technology and fostering a culture of continuous improvement. Stay tuned to discover the essential strategies and next steps that can help your financial institution achieve a seamless and integrated wealth management experience.