Embracing the transformation of the wealth management industry

Technology is transforming the traditional wealth management industry and smart players are embracing this trend.

From payments to lending, financial technology, or fintech, is driving innovation across many segments of the banking sector. This wave of disruption has extended to the private banking space and led to the development of a range of innovative wealth management services and platforms. As digital tools become more prevalent in the lives of High Net Worth Individuals (HNWIs), they expect their bankers to offer them solutions that afford them the same level of convenience in managing their wealth.

Technology and data are being used to tailor solutions and services to meet the specific needs of HNW clients. Today, many of these digital solutions are helping advisers to better connect with their clients through self-serve platforms that offer real-time access to information related to their portfolio, as well as the power to execute trades at their fingertips.

Looking ahead, powerful models driven by artificial intelligence may be used to predict major events in a client’s life, such as retirement or planning for succession. Meanwhile, the use of data analytics tools can be used to better identify and mitigate risk.

In the nearer term, the next wave of fintech could focus on automating the advisory process. Known as robo-advisors, such solutions use algorithms to construct, manage, optimize, and rebalance portfolios, after considering a client’s risk profile and investment objective. Robo-advisors can support traditional wealth advisors, freeing them up to spend more time to engage with clients. Amid all the promise of fintech, however, private banks must remain vigilant about security, as the increased use of data and technology such as facial recognition software is raising privacy and security concerns among clients.

While the trend of digitalization fueled by fintech will only accelerate in the coming years, private banks must not forget the importance of the human touch when engaging with HNW clients.

To succeed in today’s digital age of wealth management, private bankers must leverage the powerful digital tools at their disposal to complement their expertise and experience to enhance the overall customer experience.


Source: Forbes

Banks, credit unions & why they should improve their digital offerings