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Hybrid Solutions in Wealth Management


Hybrid Solutions in Wealth Management


Norbert Paddags shares an article on the combination of digital solutions and personal communication in wealth management. 

Hybrid solutions in wealth management

Hybrid models are the panacea that make driving fun and at the same time allow you to have a clear conscience thanks to the electric drive. But hybrid solutions are not only in fashion in the automotive sector, but also in wealth management.

What is meant here is the combination of digital solutions and personal communication, which increases the efficiency potential through digitalization while maintaining personal support. Although there is a broad consensus that hybrid solutions represent the “future”, there is still a lot of uncertainty about what they actually look like and the logic according to which they can be structured.

Here is a suggested structure, as always in Digital & Wealth, clearly separated into “The Question”, “Facts” and “Conclusions”.

The question

“What structural logic should a hybrid solution be based on in order to achieve the optimal customer benefit and efficiency potential?”

The facts

The future model of a hybrid solution is necessary in order to withstand the (regulatory) cost pressure and at the same time enable individual advice ( BCG ).

Although customers’ digital affinity is increasing, differentiated analyzes of various types of digitization by Prof. Teodoro Cocca, University of Linz, show that around 80% of private banking customers are “hybrid customers”, i.e. currently a combination of digital access and a form of personal advice prefer.

With regard to the type of interactions, Prof. Cocca’s analyzes also show that there is a high willingness to carry out information and transactions digitally, but that advice should be given personally (LGT study and lecture at the Asset Management  Management  Forum )

Activities in asset management can be divided into five categories, which build on each other, with some explanatory notes: 1) selection of financial instruments, 2) portfolio management, 3) information, 4) advice” i.e. collection of goals and risk profile in the initial consultation as well as further ones Financial planning services and 5) additional services such as foundation consulting.

Concepts from complexity management, which are used, for example, in automobile manufacturing, are helpful when deciding which activities should be digitized and which should not. A distinction is made between “external” complexity drivers, such as customer expectations, and “internal” complexity drivers, such as production requirements. In general, the goal of complexity management is to realize the unavoidable external complexity with the lowest possible internal complexity ( complexity management ) .

If you combine these principles of complexity management with a customer-centered approach, i.e. that all activities are geared towards added value that is experienced and paid for (!) by the customer, the following principle arises: the lower the individually experienced customer benefit, the lower the need for individualization and the greater potential for standardization and digitalization.


Key points include

  • Customers digital affinity
  • Complexity management
  • Digitalization potential 


Read the full article, Hybrid solutions in wealth management: A structural proposal, on