Targeting the high-net-worth segment is an interesting approach for robo-advisors. This move will undoubtedly increase customers’ scrutiny on portfolio performance and demand for personalized financial planning by a human advisor. As robo-advisors explore hybrid delivery models, they open themselves up to intense competition from traditional banks that already have strong advisor networks in place, ready to be complemented with automated offerings.
How Fintech Is Shaping the Future of Wealth Management
A report from the World Economic Forum predicts three possible scenarios for advisors.
News: Time to digitalise amid tightening margins
Wealth management firms, both independent and bank-backed ones, have seen their pre-tax profit margins decline in each region of the world in the past decade. This has been due to factors such as the push by regulators for greater transparency and investor protection, the rise of low-cost passive investment vehicles such as exchange-traded funds (ETFs) and increasing competition from financial technology (fintech) firms, according to Boston Consulting Group’s Global Wealth Report 2017.The report says the biggest declines in pre-tax