From Artificial Intelligence to Machine Learning

These Are Four Ways That Technology Is Revolutionizing the Wealth Management Industry.

Wealth Tech (technology) firms have proliferated in recent years. Cutting-edge technology is infiltrating nearly every industry, from manufacturing to transportation to financial services.

Within financial services, technologies such as data analytics, artificial intelligence, and machine learning, among others, are paving the way for shorter response times and better consumer experiences.

To remain relevant as technology develops, business models must evolve as well. The financial management industry is not immune to this phenomenon!

Ankur Maheshwari, CEO-Wealth, decodes the implications of new technological breakthroughs in the wealth management industry.

Wealth technology is helping to scale the wealth management industry.

Wealth technology enables businesses to provide a more comfortable, hassle-free, and engaging experience to customers at a lower cost.

Adoption of cutting-edge technology such as big data analytics, artificial intelligence (AI), and machine learning (ML) is assisting wealth management firms in staying ahead of the curve in the new age of investing.

While the deployment of modern technologies has been ongoing for some time, the epidemic has accelerated the speed of implementation.

New investors and young people are making extensive use of technology. According to the RBI, overall digital transactions in India increased from 14.59 billion in fiscal year 2018 to 43.71 billion in fiscal year 2019.

ACI Worldwide published a report on this. In the year 2020, more than 70.3 billion real-time transactions were conducted globally, with India leading the way with more than 25 billion real-time payment transactions.

This reflects the increasing usage of technology in the financial services business internationally and in India.

Technology has had a big influence on the client experience and services of wealth management firms in a number of areas.

Meetings and Interactions With Clients

Previously, wealth managers would physically meet with investors to discuss their asset management needs. However, we have lately seen a surge in investor desire for new digital touchpoints that provide more convenience.

Investors and investment managers have embraced video calling and shared desktop tools to give a more seamless experience.

Digital touchpoints are available 24 hours a day, seven days a week.

Technology has also enabled businesses to provide clients with cost-effective digital touchpoint solutions that provide quicker and faster access to portfolio updates, different reports such as capital gains reports and holding statements, and transaction ease.

Chatbots and WhatsApp-enabled touchpoints are assisting in offering a high-end client experience in a timely manner.

Analytics and Reporting for Portfolios

Data analytics has not only improved the way wealth managers analyze investor portfolios, but it has also lowered the amount of time wealth managers spend on spreadsheets.

Wealth Tech also provides deeper insights into portfolios, allowing wealth managers to provide a more complete and personalized offering to investors that meets their expectations and risk tolerance.

The wealth management market is significantly altered by artificial intelligence and machine learning technologies, along with big data analytics, along with big data sets. This market is seeing significant growth in robo-advisory and quant-based product solutions.

Process and Documentation Simplicity:

Previously, the paperwork and KYC procedure were a bottleneck, with processing times of several days in some circumstances. Document storage is especially difficult since it necessitates a secure storage location and papers are prone to damage and/or misplacement.

With technological advancements, we are now transitioning to a wholly digital and/or ‘phy-gital’ manner of business. While investing in certain products, such as mutual funds, is entirely digital, the procedure for others, such as PMS, AIF, structures, and so on, is shifting toward phy-gital mode.

The adoption of Aadhar-based digital signatures and video KYC has drastically reduced total processing time!

To summarize

A trend away from product-based offers and toward comprehensive offerings

As a younger generation enters the labor field, there is a change in emphasis toward new-age investors.

These new-age investors are not only technologically adept and early adopters, but they also have higher expectations in terms of offers.

With easy access to information and rising awareness, investors are searching for holistic products that address all of their wealth management needs rather than just product-based offers.

To stay relevant, incumbents in the wealth management market should embrace technology as an intrinsic component of their client offering, if they haven’t already.

For incumbents, it may be less expensive and faster to get into tie-ups, partnerships, or purchase new generation technology businesses to swiftly catch up than to construct in-house technological solutions.

The only constant in life, as the saying goes, is change; technology is a shift for the wealth management area that must be welcomed!