Disruption in the wealth management industry is pressuring incumbents to rethink their value propositions. While pure play robo-advisors have made low-cost, accessible services the focal point of their go-to-market strategies, some incumbents have responded by offering more comprehensive services across a client’s financial lifecycle. However, a sizable market opportunity likely exists for players that strike an optimal balance between service personalization and back-end automation.
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