The Impact of Technology on Wealth Management

While the pandemic helped accelerate the shift towards digitalisation, the reality is that the adoption of technology in many facets of life and business, including wealth management, was well underway before 2020. Certainly, in the midst of the COVID-19 crisis, technology offered an opportunity for people to stay connected. For wealth managers and investors, it also provided ways to innovate service delivery.

Investment professionals such as Jonathan Bennion-Pedley, who works with Investment Owl, appreciate and see the positives from the disruption that technology has brought in the financial services and investment sector. Several factors have fuelled the tech shift and key among them is a change in expectations by investors. Changing demographics among investors is also something to keep an eye on, and it’s driving a change in relationships with advisors.

Key Drivers

Within the wealth management ecosystem, faster technology adoption is being driven by needs in the following aspects:

• Insights: Data is only as useful as the insights that can be gained from it. As such, tapping into cloud-based platforms for analytics is helping provide richer insights that are necessary for informed decision-making.
• Interconnectedness: Increasingly, different companies within the wealth management space are integrating their platforms to provide expanded offerings, or leverage distribution services for greater efficiencies. Either way, technology is at the heart of making this possible.
• Visibility: As a result of the previous point, more integration means increased visibility for the service provider. For clients, expanded offerings or service views means they have more information at their disposal.

Future Opportunities

The increase in technology usage will undoubtedly draw some concern, particularly about replacing humans in various roles. However, in wealth management, it can help transform aspects such as:

• Customer Service: As businesses grow, keeping up with customer demands is key to ensuring seamless service provision. The use of artificial intelligence (AI) technology in customer service can make it easier for staff to handle growing customer demands. Additionally, with many companies opting for remote workforces, the ability of staff to use technology is vital to business success.
• Create better offerings: By using the data gathered, predictive analysis technology can help wealth managers come up with unique, and better, offerings for their clients. While clients stand to benefit from better products, it also makes life easier for wealth managers and ensures they stay ahead of the curve in a competitive market.

The wealth management industry has long relied on trust and deep relationships to do business. These are essential for any business, and will always be a tried-and-true approach to success. Still, technology will find its place and help enrich these relationships.