COVID19 is boosting the wealth management industry digitalization and commoditization. It’s time to look at how digital transformation and digital approach will impact the future of wealth management and 디지털 뱅킹.
In this blog post, we will discuss some of the changes coming in wealth management as well as what they mean for you!
자산 관리 is about to undergo some major changes in the next decade. There are new technologies coming down the pipeline that will provide services to investors and businesses, to invest their money. Technology like Robo Advisors and 인공 지능 will be accessible to every client or business that wants to improve its financial situation through wealth management. These innovations could eventually replace human financial advisors altogether. But how does all of this affect you?
How automation will affect the wealth management industry?
로보 어드바이저 are basically automated investment tools that can be set up to automatically invest in different funds and stocks without any human interaction from a wealth manager. Through the ability to enhance analytics and large amounts of data they can monitor the global economy and finance markets to derive insightful advice and investments for their clients. You just have to tell the Robo advisor how much money you want it invested in, what your risk tolerance and strategy are, what sectors you focus on, and then let it run! The only time a human will need to intervene is when it comes to financial planning and private banking that human interaction is crucial. With InvestGlass you can build your 로보 어드바이저 in 10 minutes!
Build 디지털 온보딩 양식을 작성하고 InvestGlass 리밸런싱 도구에 연결하여 나만의 로봇 어드바이저를 만들 수 있습니다. 이 로봇은 모델 포트폴리오 청사진에서 트레이딩 블로터를 생성하는 데 도움을 줍니다. 리밸런싱은 CRMKYC to make sure that you respect each clients’ suitability before you trade
How the management fees of wealth managers will be affected?
Robo advisors have highly affected the fees generated for wealth managers. Since the advent of AI in finance, the cost of investing and trading has dropped significantly. Wealth management and service providers took a major hit as far as their management fees are concerned. A wealth manager can no longer compete with the really low management fees their competitors are offering. As seen in the below graph, the higher management fees can heavily affect your cumulative returns over time. An average active management advisory fee is close to 2-3 % while an ETF fee will be around 0.60%. This difference might look minor for one-year performance, but if you take under consideration a 10-year lifespan and the compound effect, the difference will be substantial.
Should a wealth manager approach young investors differently?
아자렛 메트리오 진토스
An investment manager should always try to approach the younger generation’s needs in order to compete with 인공 지능 and leverage technology. This can be achieved through investment and financial advice in next-generation topics, like sustainable finance that ranks top in the investment preferences of Generation X and Z. This means, that we should see a shift in wealth management industry towards topics of Sustainability, ESG, and DeFi where most of wealth advisors should specialize in order to catch up with these new trends.
The question always remains, is a managing director or senior management, willing to invest in the digital transformation of their company?
It is important to consider the future of wealth management.
InvestGlass has created a suite of 디지털 도구 that will help you assess where your clients are in their financial journey and what they need today for tomorrow’s success. InvestGlass offers a single platform for portfolio management system, order, trades, payments and risk management, FINSA, MIFID.
You can develop stronger customer relations through the use of real-time insights and data-based recommendations to tailor your advice to your customers’ needs. Additionally, the tagging option allows you to classify your clients into various categories, such as risk-averse and risk lovers, or sports fans and technology optimists.
The future of wealth management lies ahead. Are you able to follow? Contact us.
