The WEALTHTECH Book

Preface

With the development of digital wealth management (“WealthTech”), including robo-advisory platforms and virtual advice, the global investment management industry is facing huge disruption. In addition to successful digital wealth management solutions, customer preferences are changing and the millennial generation often prefers a “do it yourself” approach via apps instead of meeting a financial advisor in person. Considering that trillions of pounds will be inherited by this tech-inspired generation from their wealthy baby boomer parents, and the general trend that consumers are used to a great digital experience, most asset managers and private banks will need to closely review their product, distribution and marketing strategies over the next decade to stay in business.

In addition, the pressure to lower fees and achieve higher returns has allowed WealthTech solutions to shine, helping to generate higher alpha, reduce risk and significantly lower the costs of money management, financial planning and advice, while at the same time delighting their customers with a superior user experience.

Some emerging business models – such as robo-advisors – were initially focused on servicing customer segments which could not be serviced profitably by traditional players, before moving upstream and competing with incumbents. Other propositions are focused on empowering existing financial advisors and private bankers with the latest digital innovation and technologies, or supporting ...