The Role of Technology in Wealth Management
Technology has long had a role in the business of wealth management; however, historically its role was to
support the internal needs of wealth managers in areas such as portfolio management and accounting.
Since 2010, we have witnessed a significant revolution in the application, flexibility and deployment of technology
in the wealth management sector. Today, there are more solutions than ever before, all of which are powered by
big data analytics.
From Artificial Intelligence to robo advisors, there are many changes taking place which are affecting different
areas of the wealth management industry, including regulation, privacy and transparency. And while robo
advisors are in no way going to take over the industry, they are changing the way we interact with it.
Here are four ways in which technology is influencing the wealth management industry:
- Improved Customer Interactions
A study by the Shullman Research Centre found that 23% of the world’s millionaires are millennials, while over
50% of all wealth will be held by generation X and millennials by 2020. These groups, who are renowned for
moving their wealth around a great deal, will also be on the receiving end of the $30 trillion transfer of wealth
from the baby boomers.
Technology has enabled wealth managers to interact with new generations and manage their expectations like
never before. From around-the-clock availability to effortless interactions, wealth managers are using AI
chatbots to simulate customer interactions and improve communication with their customers.
- Predicting the Future
One of the greatest benefits of AI is its ability to sift through big volumes of data. What would typically take a
wealth manager weeks or even months to do can now be achieved in a matter of days – or even hours.
Wealth managers are using robo advisors and AI to view and constantly assess their clients’ portfolios in more
dynamic and accurate ways. These advanced systems can quickly predict financial outcomes by looking at past
and current trends in wealth, as well as outside factors such as the news, social media and product reception.
- Create Unique Offerings
Modern clients expect wealth management services to be tailor-made to their lives. Using the data gathered,
along with information on the client, AI systems can determine where customers’ money can be spread, or which
products they should invest in. This expedites the wealth manager’s role, enabling them to refine the information
and create customized product offerings on a client-by-client basis.
- Facilitated Operations
Sifting through large volumes of data is always subject to human error. With AI, wealth managers can look at
specific data and monitor every aspect of their workflow. These systems provide information to managers and
assist them in rectifying errors and facilitating operations.
The Evolution of Wealth Management
Technology is freeing wealth managers from repetitive and complex tasks, while enabling them to provide
specific insights based on the individual needs of the customer. To stay competitive, wealth managers must
embrace this new era of modern technology in order to become more proactive, stay ahead of the curve and
offer solutions that meet clients’ precise goals.
Prospectacy Limited offers both personal and corporate wealth management services.
With absolute dedication to our clients’ objectives, we embrace the technological
advancements in the sector, being able to deliver the best possible solutions.