WEALTH management is among the least technologically-literate financial services sub-sectors globally, and already finds itself well adrift of other industries in this regard, a report has concluded.
The report by accountancy firm PricewaterhouseCoopers, based on research involving more than 1,000 high net worth individuals across Europe, North America and Asia and interviews with industry players, shows only one-quarter of wealth mangers offer digital channels beyond email.
PwC contrasted this with the survey finding that 85 per cent of high net worth individuals use three or more digital services in their day-to-day lives.
The survey found 69 per cent of such individuals use online and mobile banking. And the report shows more than 40 per cent use online means to review portfolios or investment markets.
Barry Benjamin, global asset and wealth management industry specialist at PwC, said: “
“This conflict within wealth management firms, combined with a client base that feels only weak affiliation to its chosen providers, is creating a sector that is now acutely vulnerable to digital innovation from fintech incomers, including robo-advice services.
“Ignoring this state of affairs is not an option. If firms do not respond now, they simply will not survive in the medium to long term.”
PwC says it defines fintech as “a dynamic segment at the intersection of the financial services and technology sectors where technology-focused start-ups and new market entrants innovate the products and services currently provided by the traditional financial services industry”.
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