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Fintech - The Disruption Of Wealth Management?

The Fintech Times claims that London is being hailed as the global centre of fintech, noting that “The British capital currently hosts 17 of the top 50 fintech companies in the world, and it is the biggest existing cluster of successful fintech companies.”

Fintech is impacting all areas within the financial services sector and this month we focus on how it is affecting the wealth management sector in particular.

With many claiming that Asset and Wealth Management Services have been slow to react to the benefits of the development of fintech, through the articles below, we examine what it means for clients, advisors and the streamlining of the sector as a whole.

Fintech An Opportunity For Wealth Management – The Wealth Mosaic 

Claiming that “Over half of High Net Worth Individuals (HNWIs) believe that it is important for their financial advisor or wealth manager to have a strong digital offering. Wealth management needs to adapt to this and provide the technology that is increasingly demanded by their clients.”

This article explores the ways in which wealth management firms can look to integrate fintech developments to enhance the mechanisms that they already have in place, rather than fight it. This will ensure that they put more time into researching and advising, than in back office, providing more time for their clients’ needs, preferences and concerns and, ultimately, delivering a better service overall.

How Fintech Is Disrupting Wealth Management – Investopedia

With global investments in fintech ventures rising 18% to US$27.4 billion in 2017, Barclay Palmer considers the ways in which the wealth management industry can adapt to the developments within the sector. In addition to the contribution by The Wealth Mosaic it explores  what it means for advisors as well as clients and how it can benefit both sides.

Winds Of Change: Fintech In The Wealth Management Industry – The Telegraph

According to research, age has nothing to do with the way that a client wants to interact with their banks and the wealth management sector should take heed of the fintech revolution, which offers great new ways for clients to interact with their finances.

In this video, Stuart Cummins considers robo advisors, discussing where there is a place for low cost self service portals, but also points out their limitations, particularly for high net worth individuals. Whilst many HNWIs may want access to their portfolios through services that fintech can provide, they still need and require a human that understands the emotions and complexities of their life and finances to put the best financial planning in place for them. He further discusses the next digital opportunities that will benefit HNWIs and how they might be put in place to make for a more slick and convenient way of engaging and protecting clients.

Key Takeaway

Ultimately, high net worth individuals will continue to find use in a human financial advisor, who can fit the nuances of their needs with the complexities of their assets. Services are expected to be slicker, more transparent and accessible as wealth starts to be handed down to and made by the next generation. Those wealth management firms that take notice and use Financial Technology developments to enhance their services will be the ones that succeed.

You can learn more about fintech here 

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At Wren Investment Office, we aim to help our clients better navigate the wealth management and investment sector, across which there are many topics, areas and niche aspects. You can find more about new and popular topics in the Recommended Reads section of our News & Insights.