Robo-advisors are beginning to cross borders, opening up traditional wealth managers to new competitors in foreign markets. As this trend continues, smaller innovators will increasingly face competition from large financial institutions in markets like the U.S. and United Kingdom. It remains to be seen whether innovators can effectively compete directly with traditional wealth managers or win by exploring alternative strategies, such as becoming a niche player.
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