Let's get digital: Wealth advisers must turn to tech to meet client requirements

The coronavirus pandemic may have accelerated the use of technology in both in business and at home, but a new research report from Delio this week suggests that when it comes to offering private market investments to their clients, wealth managers must 'urgently increase their use of technology' or risk being left behind by their competitors.

Delio CEO and co-founder Gareth Lewis, says: "Any firm that is serious about providing a complete wealth management service to their clients needs to deliver a holistic private markets solution. Technology will be fundamental to the delivery of these services and needs to be implemented across the board sooner rather than later."

Wealth management technology specialist Finantix meanwhile has also highlighted the need for wealth managers and financial advisers to keep pace with the latest developments and adopt the same tech tools their clients are using at work and at home to provide a highly personalised service. A new Finantix report says that poor investment performance does not automatically or exclusively trigger high levels of client dissatisfaction, with unsatisfactory service experience being the biggest factor, influencing 87 per cent of HNWIs to change provider. Poor communication meanwhile, is four times more likely to end relationships than poor investment performance. 

Tech savvy investors and their advisers meanwhile, will have been disappointed by the FCA's announcement this week that the sale of cryptocurrency derivatives to retail clients is to be banned from January next year. The FCA cites significant volatility and inherent difficulties in valuing crypto assets, which could result in a high risk of investors suffering significant losses, for its decision, claiming that retail investors will save around GBP53 million as a result.

Risk meanwhile, is an issue for many UHNW families, according to a new survey by office by family office Stonehage Fleming which reveals that 40 per cent do not a have a process in place for identifying, quantifying and mitigating the many and varied challenges a family may face. Despite the ongoing turmoil caused by the coronavirus pandemic though, family disputes and a lack of future family leadership remain the biggest perceived threats to long-term financial well-being.

Back in more mainstream investment territory, UK savers put GBP1.8 billion into retail funds in August compared to an outflow of GBP500 million 12 months earlier, according to the latest figures from the Investment Association. Bond funds continued to see strong sales while responsible investment funds attracted almost GBP900 million, proving their resilience amidst the ongoing economic uncertainty.

In response to the ever-increasing interest in responsible investing, Calvert Research and Management, a subsidiary of Eaton Vance Corp, has launched the Calvert Institute for Responsible Investing, an affiliated research institute dedicated to driving positive change by advancing understanding and promoting best practices.

"Examining race and injustice, climate change and other critical issues will allow us to amplify voices that challenge the status quo based on research results and educate individuals and institutions at various stages of their responsible investment journey," says Anne Matusewicz, a director of the Calvert Institute.

Wealth Adviser
 

Copyright © 2020 All Rights Reservered

About | Disclaimer

Unsubscribe me from the list