Over 56% of wealthy investors would like to work with tech giants offering advisory services
Enter the new era of advisory services: traditional wealth management firms will soon be joined by firms like Google and Facebook as the big tech groups invade the investment advisory space.
Unlike the incumbents, however, these tech giants will leverage artificial intelligence to launch their services.
Capgemini Global Financial Services David Wilson told CNBC that tech firms may appeal to the wealthy market due to their deep knowledge of data, retailing expertise, and social experience – things traditional asset management firms seem to lack.
A study by the firm showed that high net worth individuals seeking high-quality wealth advisory services are attracted to the potential of these tech firms to achieve greater returns.
In fact, the study found out that 56.2% of wealthy individuals would want to work with the likes of Google, Facebook, Apple, and Amazon if they offer wealth management services. Over 81% of the respondents under 40 years old even said they might shift to one of these tech players if given the chance.
This thinking might have been caused by the dissatisfaction observed in some investors. The study revealed that whilst asset managers perform beyond market expectations, wealthy clients were only "modestly satisfied" with the performance of their advisors.
"The big reason, I believe, is the lack of personalization in some instances of the experience," Wilson noted.
He furthered that the ideal model would be a hybrid that complements the best of digital and personalization, and has the ability to tap into the human advisor in a more modular way.
In a separate Bloomberg report, Capgemini global head of financial services market intelligence Brian Sullivan said these tech firms could utilise their agility, speed, ability to harness data, and capacity to drive transparency to support traditional wealth managers.
“It’s less likely that Big Tech will be a direct competitor and steal clients away, but you are probably more likely to see some partnerships and collaboration,” he told Bloomberg.
For more of Wealth Professional's latest industry news, click here.
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Unlike the incumbents, however, these tech giants will leverage artificial intelligence to launch their services.
Capgemini Global Financial Services David Wilson told CNBC that tech firms may appeal to the wealthy market due to their deep knowledge of data, retailing expertise, and social experience – things traditional asset management firms seem to lack.
A study by the firm showed that high net worth individuals seeking high-quality wealth advisory services are attracted to the potential of these tech firms to achieve greater returns.
In fact, the study found out that 56.2% of wealthy individuals would want to work with the likes of Google, Facebook, Apple, and Amazon if they offer wealth management services. Over 81% of the respondents under 40 years old even said they might shift to one of these tech players if given the chance.
This thinking might have been caused by the dissatisfaction observed in some investors. The study revealed that whilst asset managers perform beyond market expectations, wealthy clients were only "modestly satisfied" with the performance of their advisors.
"The big reason, I believe, is the lack of personalization in some instances of the experience," Wilson noted.
He furthered that the ideal model would be a hybrid that complements the best of digital and personalization, and has the ability to tap into the human advisor in a more modular way.
In a separate Bloomberg report, Capgemini global head of financial services market intelligence Brian Sullivan said these tech firms could utilise their agility, speed, ability to harness data, and capacity to drive transparency to support traditional wealth managers.
“It’s less likely that Big Tech will be a direct competitor and steal clients away, but you are probably more likely to see some partnerships and collaboration,” he told Bloomberg.
For more of Wealth Professional's latest industry news, click here.
Related stories:
Robo-advisor enhances offering
Canadians getting rich faster than Americans
