HNWIs demand tech-enhanced services
A new report from Forbes Insights and Temenos surveying wealth managers and high net worth individuals (HNWIs) underscores the importance for private banks to continue their digital transformation.
Those surveyed had seen increased demands that technology and robo-advice play a greater role in the wealth management, with HNWIs looking to wealth managers and banks to invest in technology to de-risk investment management and tailor advice to individual needs.
Wealth managers believed that delivering highly personalised services would be essential to achieve a competitive differentiation, but a third were unable to use personalised services to the degree they wished.
The report highlighted three “pathways to success” that would define the next generation wealth manager: customer experience enhanced by digital client services and personalisation; insight gained through artificial intelligence (AI) and analytics; and new markets defined by the mass affluent and alternative investments and operational efficiencies.
Among the top findings of the report:
- 64 percent of wealth managers said digitisation was essential for communications and service enhancement, up from 52 per cent in 2017 and 25 per cent in 2016;
- 83 per cent of HNWIs believed senior management needed to commit greater resources to technology investment;
- Acceptance in digitization among HNWIs had significantly increased over the past three years (up to 87 per cent);
- 86 per cent of wealth managers saw AI as important in data analysis and personalised insights compared to 67 per cent in 2018; and
- Technology should unlock more active portfolio management, provide insights driven by AI and reveal new opportunities in alternative investments.
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
