Technology has been a part of asset and wealth management for a number of decades, although these technologies have changed throughout the decades, it has always been a part of the FinTech space. However, Asset and Wealth Managers have been traditionally slow to adopt new technologies, putting them behind other companies within the Wealth management industry.
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Last month, our Executive Chairman Keith Hale joined Meagen Burnett, Chief Operations Officer of M&G Investment Management on the 'Coffee with AlgoMe Consulting' Podcast to discuss the FinTech space and how many firms are adopting digitalisation to improve customer engagement and overall operational efficiency. As part of the discussion, Keith spoke about how the fastest growing wealth management companies are those that have adopted digitalisation as adopting new technology can help improve the customer journey.
Meagen discusses how the asset and wealth management industry is playing catchup to other industries within financial services like banking, asset management is having to react to the pressure on fees that are caused by the increase in regulation in its space. Asset managers need to strike the fine balance between being compliant and providing an excellent customer journey whilst keeping fees down. This is where adopting digitalisation and automation can benefit asset and wealth managers. FinTech providers help asset and wealth managers to concentrate on what they are good at which is expanding the wealth of their customers.
Meagen outlines the two key drivers for digitalisation, the pressure on fees that pushes asset and wealth managers to need technology and automation as well as the change in consumer needs. As well as Data being the accelerator for transformation providing challenges of customer and investment data to the industry as a whole. This is causing demand for technology that can manage this ever-increasing bulk of data effectively, if this is provided; it could provide customers with a smoother onboarding experience.
Keith also discusses the benefits of the incorporation of AI into Financial technology, helping with fragmented data that happens through the value chain of investment, assisting with automation. AI can also increase machine learning which is helping manage the mass of data as it can analyse it quicker than a human can through manual processing. However, machine learning cannot be too prominent as it could possibly affect the customer experience.
Hannah is Marketing Executive at TrustQuay