Digital Business Model for Wealth Management Operations as Matchmaker of Generations
By Laura Irmler
Senior Consultant, ARKADIA Management Consultants GmbH
The wealth management sector is under increasing pressure. While their traditional and highly conservative approach has satisfied customers for quite some time, a growing number of customers feel attracted by more innovative solutions for their investment needs. Numerous so-called WealthTech start-ups attack incumbent players in different areas. WealthTech activity can be divided into six categories: automated investments and robo-advice; social and copy trading; crowd-investing; analytics and information; and deposits and pensions; as well as platforms. The most advanced solutions can be found in the category of robo-advice. A current market analysis shows that the global investment volume in the “robo-advisors” segment of 2017 will rise by roughly €203 billion to €958 billion in 2021 – with the USA in the lead.1 Sounds huge, however, compared with the overall market for global assets under management it can almost be neglected (as of today). Further rapid growth can be expected to come from incumbents that start to offer robo-advice as well, as seen in the USA.
Low Cost/High Value?
Robo-advisors work much more cost-efficiently, faster and without emotional influence – just some of the key advantages for customers. However, robo-advice solutions are also advantageous for wealth managers as well. They enable incumbents ...
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