Many investors are still wondering about WealthTech: its meaning, how it works, its usefulness and its application in the management of their portfolios. We asked Pierre-Alexandre Rousselot, President and Founder of KeeSystem in Monaco, to present this technological solution.

WealthTech: Management tool at investors’ service

What is a Wealthtech?

It is a fintech specialized in the wealth management. This is precisely the positioning of KeeSystem, which specializes in the digitalization of the wealth management profession.

WealthTech: Management tool at investors’ service

Are some financial centers more prepared or in demand than others in terms of WealthTech? How is Monaco positioned?

Indeed, there are financial centers that are more predisposed to adopt WealthTech solutions and therefore more in demand.

To understand this, we need to look at the evolution of the financial industry. The digitization of retail banks started more than 10 years ago, and other financial sectors followed. Wealth management started its digitalization much later.

It would be a serious mistake to judge this delay coldly without understanding it. Wealth management is a very artisanal, very personalized approach to finance.  As a result, digitalization has aroused a lot of mistrust and fears: fear of losing the quality of service, expertise and client relationships. This is especially the case for asset management companies with a long history in asset management. They have inherited a non-digitized know-how that they must now transform.

Moreover, the environment of these asset management companies has changed significantly. On the one hand, they are feeling pressure from their clients who are demanding a digital experience and on the other hand, regulatory requirements are imposing a very restrictive compliance management.

Among the most advanced financial centers, I would mention Luxembourg. However, although Swiss demand started later, management companies have made up for it in a big way. As for Monaco, I would say that this market is in the trend, there is no delay compared to other financial centers.

It’s not so much the geographical area as the environment of the wealth management companies that determines their appetite for a WealthTech solution. High expectations from their clients combined with compliance pressure push them to turn “naturally” and above all rationally to solutions like KeeSense.

WealthTech: Management tool at investors’ service

It is often said that family offices are afraid of the transition to digitalized finance, is this a reality?

There are as many family offices as there are families. It is not a standardized industry. Each family office is organized to meet the specific needs of the family with its own processes, organization, tools and resources.

In fact, some family offices find it difficult to start digitizing when faced with processes and habits that work without digitization and for fear of seeing the quality of their services decline. The reasoning can be summarized as “why change a winning team?” and in the end, it is a difficult position to discuss! For these clients, it is necessary to educate them so that they perceive the added value of digitalization.

The strength of family offices is that they are structures that can be very agile. They are independent structures. Single family offices don’t need to be trendy or meet the expectations of many clients. They are accountable only to family members. As a result, they do not have a dogmatic approach to digitalization but, on the contrary, a very pragmatic vision.

It is particularly stimulating because we help them to simplify their daily life. They turn to wealthtech solutions to help them manage a growing volume of information, to have quality data and fluid processes and workflows.

WealthTech: Management tool at investors’ service

Is it easier for a wealth manager of a management company or a banking institution to fear this transition?

Unlike family offices, asset management companies and banking institutions are commercial companies. While wealth managers are no more or less afraid of digitalization than family offices, they are under more pressure to make this change. Their clients are expressing expectations in terms of digitalized services and experience, especially in terms of spontaneity of exchanges. In addition, asset management companies and private banks are facing much greater pressure from regulatory authorities in different countries to adopt a digital solution.

Today, the various tasks required to ensure investor protection and meet compliance management obligations are almost impossible to achieve without digitalization.

WealthTech: Management tool at investors’ service

What is the client trigger for KeeSense solution?

Our prospects come to us for the advice and the business vision we have. With our experience and insight, they know they will get personalized advice on the target organization and processes that need to be put in place. They don’t just come looking for a solution but for expertise and best practices for “digital health”.

Once they experience KeeSense, they appreciate its ability to address many of their needs and constraints with a single, easy-to-use solution. They realize that it is easy to use because of the attention paid to ergonomics and user experience. They can see themselves in the daily use of this tool.

In terms of connectivity, the fact that KeeSense interfaces directly with all custodian banks is also clearly a trigger.

WealthTech: Management tool at investors’ service

What would you say about Excel for wealth management?

Almost all of our clients use Excel in one way or another. Excel is a very powerful tool for manipulating numerical data. Excel is very good… for handling numbers!  On the other hand, Excel is a limited solution as soon as you use it for something else than spreadsheets.

Today, asset management companies need a CRM, a collaborative solution, workflows and automated processes to manage client relationships, reporting, portfolio management and compliance. This is what a solution like KeeSense provides.

However, we don’t want to deprive our clients of Excel, nor of the other solutions they like to use to manage their business. That’s why we created the KeeSense API. This feature allows KeeSense to communicate with other software and tools to exchange information. In this way, our clients and users create their own customized work environment.

Interview Pierre-Alexandre Rousselot – KeeSystem