Liability-Driven Investment

CHAPTER 11Liability-Driven RoboAdvice and the Development and Digitisation of the Industry

In the following section; we look at the future of investment services, in particular at the growth of Robo Advice. We explore how greater uptake of technology driven solutions is changing the way we interact with the financial services industry. Financial Advice is moving from the relationship driven analogue processes of the last century to more modern digital and automated processes capable of reaching larger markets than ever before. We explore how the use of this technology is already changing Risk and Wealth Management and will continue to do so in the future. Introducing the concept of Wealth Technology or WealthTech. Robo-Advice is still in its infancy but is likely to radically alter the financial landscape over the next ten years. Although the current crop of robo-advisors mainly rely on algorithms generated by Modern Portfolio Theory, the next batch of digital solutions are likely to rely on more holistic solutions. This is likely due to the continuing rise of Goal Driven Investing and LDI and likely regulatory pressure that will require increasingly complex solutions that more closely match consumer needs.

WEALTHTECH: HOW WEALTH MANAGERS AND THEIR CLIENTS ARE EMBRACING NEW TECHNOLOGIES

With many forms of consumption becoming ‘Digital’ financial services are no exception. Technology is rapidly changing the nature of our commercial relationships, and these changes are happening ...