Dynamics 365 in Financial Services — Wealth Management

As a wealth manager, do you long for a day when data doesn’t drown out your client focus? Crafting personalized investment plans and fostering meaningful relationships matter, but the daily grind often gets in the way. You may juggle complex portfolios, navigate ever-changing regulations, and strive to build lasting client relationships while feeling like time is our most precious (and dwindling) resource. Yet, what if technology existed to bridge that gap? Dynamics 365 for Wealth Management offers a lifeline. This innovative platform goes beyond data storage. It provides a unified hub for client information, interactions, and financial history. It helps you craft personalized investment plans, foster deeper client relationships, and ensure regulatory compliance with greater ease.  Intrigued? Here’s a deeper dive into the specifics of Dynamics 365 and how it can help you thrive in a time of change.

Core Features of Dynamics 365 in Financial Services

Dynamics 365 is a system that not only stores client data but truly understands their financial aspirations. It consists of a customized data model hosted in Microsoft Dataverse. This translates to a clear grasp of your client’s financial goals, investment instruments, risk tolerance levels, and other relevant financial details, such as past transactions, investment returns, and debt obligations. No more struggling with fragmented data scattered across disparate systems. Dynamics 365 presents a holistic view of each client’s financial health, enabling you to create personalized wealth management strategies.

A Forrester study found that Dynamics 365 Finance delivered a total economic impact of $3.41 million in financial savings over three years. The total investment required was $2.8 million, resulting in an impressive ROI of 122 percent.

Customized data model

Forget scattered data. Dynamics 365’s wealth management model gives you a complete picture of your clients—data, interactions, and financial history—all in one place.

1)    Know your clients inside-out

The key to exceptional client service lies in truly understanding them. This means probing their financial aspirations.

• Goals: What are their financial aspirations? Are they saving for retirement, education, or other specific objectives?
• Risk tolerance: How comfortable are they with investment risk? Some clients prefer conservative strategies, while others are more adventurous.
• Investment needs: What specific financial products or services do they require? Are they interested in stocks, bonds, real estate, or other investment vehicles?

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2)    Create personalized strategies

Handling large portfolios with diverse investments can be intricate. Wealth managers must balance risk, diversification, and tax efficiency while meeting individual client goals. Knowing your client’s goals, risk tolerance, and investment needs is the foundation for crafting personalized strategies. You can tailor investment plans based on the following:

• Their preferences include ethical investing, sector preferences, or specific asset classes.
• Create investment portfolios that align with their risk appetite.
• Customize strategies aligning with their investment objectives, whether wealth preservation, growth, or income generation.

3) Build stronger relationships

High-net-worth clients demand personalized services, customized solutions, and seamless digital experiences. The Dynamics 365 wealth management system enables you to build stronger client relationships.

• Instant access: Having all relevant data at your fingertips allows efficient communication. No more searching through scattered records.
• Personalized interactions: Remembering a client’s investment preferences, life milestones, and unique financial journey fosters a sense of genuine care.
• Happier clients: When clients feel understood and receive tailored advice, they are more satisfied.

Time-to-Value acceleration

Time is money, and Dynamics 365 saves both. Wasting time wrestling with data inconsistencies is a thing of the past. Dynamics 365 fine-tunes its data structure, ensuring that information remains consistent and relevant. It translates to an accelerated time-to-value where you spend less time dealing with data discrepancies and more time focusing on your clients.

• Rapid Implementation: Dynamics 365 leverages pre-built templates and industry-specific configurations to reduce deployment time.
• Consistency and relevance: The streamlined data structure ensures wealth management processes align precisely with business requirements. Whether it is client profiles, investment strategies, or compliance checks, you will find the data you need where you expect it.
• Automated business processes: In addition to data modeling, Dynamics 365 automates routine tasks:
  • Client communication: Automated reminders, updates, and personalized messages keep clients informed.
  • Document generation: Say goodbye to manual paperwork. Generate reports, contracts, and statements seamlessly.
  • Follow-ups: Never miss an important interaction. Dynamics 365 prompts you when it’s time to reconnect with clients.

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Regulatory compliance

In a tightly regulated environment, Microsoft Dynamics 365 equips you with advanced capabilities to ensure compliance and mitigate risks.

1. Automated workflows for KYC (Know Your Customer)

Regulatory compliance is a constant concern in wealth management.  Dynamics 365 simplifies KYC (Know Your Customer) procedures, automates risk evaluations, and effortlessly manages documents.

Onboarding

Dynamics 365 smoothly integrates KYC processes into client onboarding. This means the system automatically handles tasks like verifying client identities, checking for potential risks, and collecting necessary documents—all electronically—saving you and your clients valuable time and effort.

Risk assessment

Automated workflows verify client identities, assess risk profiles, and validate compliance with regulatory requirements. This ensures that wealth managers adhere to anti-money laundering (AML) guidelines.

Document management

The system automates document collection, validation, and storage. It ensures that all necessary documents are securely maintained and readily accessible during audits.

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2. Audit trails and documentation

Dynamics 365 for Wealth Management offers a robust system for recording and maintaining all client interactions and account activity. This translates to the following data options.

Transparent records

Dynamics 365 maintains comprehensive audit trails. Every action, modification, or approval related to client accounts is meticulously recorded. This transparency facilitates regulatory audits and demonstrates compliance.

Uneditable history

The system captures changes to client profiles, investment decisions, and communication. These permanent records are a reliable source of truth, safeguarding against disputes or legal challenges.

Version control

Audit trails extend beyond client interactions. They include version control for policies, procedures, and compliance manuals, ensuring wealth managers adhere to the latest guidelines.

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3. Alerts and Notifications

Consider the benefits of having a system that has a watchful eye on your client’s activity 24/7. Dynamics 365 for Wealth Management transforms risk management from reactive to proactive with real-time alerts and notifications.

Proactive risk management

Dynamics 365 monitors client activities in real time. When suspicious transactions or deviations occur, the system triggers alerts. Wealth managers receive timely notifications, allowing them to promptly investigate and take corrective actions.

Threshold monitoring

Set predefined thresholds for specific activities (e.g., large fund transfers). If these thresholds are exceeded, alerts are generated. This prevents potential compliance breaches.

Regulatory updates

The system notifies wealth managers about regulatory changes. Stay informed about new guidelines, reporting requirements, and compliance deadlines.

What’s next?

With Dynamics 365 for Wealth Management, that future is closer than you think. We understand the challenges wealth managers face. Schedule a personalized consultation with a Dynamics 365 expert to discuss how this platform can be customized to meet your needs. Let’s turn your vision for a more efficient and client-centric practice into reality.

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