The Tech Gap
69% of High Net Worth Individuals (HNWIs) use online banking.
47% of HNWIs not using robo-services would consider them for the future.
This is to say how the tech appetite is remarkable in the segment, which might be an alarm for the wealth and more generally asset management business. Indeed, according to a new survey from the CFA Institute, asset management would be the most affected by the rise of automated financial advice tools, the so-called ‘robo-advisers’, a much cheaper option with respect to the traditional fee-based model.
Intuitively, the most susceptible to this trend appear to be the the Mass Affluents, the least Institutional Investors and Ultra High Earners, with other Investors and High Net Worth Individuals in the middle.
Indeed, even if digital servicing is now expected from clients, we cannot think of asset management as not human-led, with the close client-advisor relationship as its peculiarity.
The innovative solutions coming from new fin-tech start-ups, which may be perceived as a threat, can actually reveal themselves as opportunities for the asset management incumbents in order to complement their current proposition.
Partnering with fin-tech innovators may enable asset management companies in integrating their activities through a comprehensive digital platform, from the back office to how they serve clients, granting a better management of costs and data.