FinTech and the Wealth Management Challenge
By Peter Guy
Editor in Chief, Regulation Asia
Private banking and wealth management are being reshaped by technology. How clients react, and benefit, will determine the future of WealthTech.
Emerging technologies are driving major changes throughout the banking industry. The entire meaning of wealth management and private banking services is being turned upside down by technology that is providing unprecedented access to data, information and advice. This revolution is already affecting how investment decisions are made. And most importantly, the evolving relationship between clients and private banks is changing the future of how money is managed.
The banking industry has also been reshaped by regulatory changes related to new technologies. They have altered competition, services and products in traditional banking activities from payment processing to asset management. Financial regulations are already shifting certain financial services activities from banks to non-banks. This has prompted the emergence of a class of “shadow banks” such as peer-to-peer lenders, and robo-advisors for wealth management. Traditional lines among financial products and services are being crossed and blurred.
Technology has surfaced as an enabler to entry, lowering barriers so new institutions can challenge big banks. Big data analytics and new distribution channels have allowed technology start-ups to disrupt the traditional business of banks. Most ...
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