The wealth management industry is changing considerably. It’s time to look at how digital transformation and digital approach will impact the future of wealth management and digital banking.
In this blog post, we will discuss some of the changes coming in wealth management as well as what they mean for you!
Wealth management 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 Artificial Intelligence 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?
Robo Advisors 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. Many companies
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 ic concerned. A wealth manager can no longer compete with the really low management fees their competitors are offering.
Should a wealth manager approach young investors differently?
An investment manager should always try to approach the younger generation’s needs in order to compete with artificial intelligence 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.
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 digital tools that will help you assess where your clients are in their financial journey and what they need today for tomorrow’s success.
The future of wealth management lies ahead. Are you able to follow? Contact us.