By Mariusz C. Bodek
Digital Transformation Executive, KPMG
and Jan Enno Einfeld
Head of Investing, Comdirect bank AG
Banks and other established wealth management players are facing an upcoming and more competitive market environment. With new players entering the market as well as increasing regulatory requirements and costs, the pressure to reinvent and further develop existing services is rising constantly. New technological solutions provide a unique opportunity to win new customer groups, like self-directed retail clients with digital and cost-efficient services (i.e. robo-advisors). In the last couple of years there have been few market “intruders” under the label of FinTech. Companies that are focusing on changing the market structure within wealth management are now becoming numerous and the market segment has received its own terminology: WealthTech.
In this chapter, we would like to offer a definition of the “label” WealthTech. Furthermore, an exclusive insight will be provided on how a leading European direct bank has faced the aforementioned challenges and constantly works on innovating and further developing its service portfolio. The first corporate innovation accelerator by a bank was founded in Germany, enabling cooperation between the bank and WealthTechs by opening the bank to external ecosystems and adding value to corporate innovation activities.