The WEALTHTECH Book

WealthTech – Taking Private Banking and Wealth Management Digital

By Dr Daniel Diemers

Partner Financial Services, PwC Strategy

The Analogue Castle of Wealth Management is Under Siege

In recent years, private banking and wealth management (PBWM) executives have been so busy staying abreast of new regulatory issues and the associated fundamental changes to their business models that most have understandably had little time to explore the latest developments in technology and assess their impact. But while digital has not fundamentally disrupted the PBWM industry yet, it becomes clear that executives around the world are required to make clear choices on where and how they want to play in a digital age. Enter WealthTech, as a specialized form of FinTech. The question of WealthTech is not if it will disrupt PBWM, but when.

Clients Request Tailored Solutions and “Bring Back the Fun”

The urgency comes from clients themselves, who prefer solid brands and long-term relationships, but whose lifestyle becomes increasingly digital beyond financial services. Also, client satisfaction with today’s PBWM services is not overly high. In a recent study, only 39% of interviewed high-net-worth individuals (HNWIs) would recommend their current PBWM provider to a friend. With HNWIs above $10 million assets under management (AUM) that rate drops – counter-intuitively – even down to 29%. An alarming statistic indeed in an industry that typically relies heavily on referrals, image and word-of-mouth. ...