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Finding the right balance between HIGH TECH and HIGH TOUCH in wealth and asset management

With billions of dollars invested in FinTech startups, there is a plethora of companies providing high tech solutions for almost every aspect in Wealth and Asset management.

Some global banks have been quick in establishing fintech teams in their institutions and are implementing different fintech solutions including setting up virtual banks, and have been successful in attracting clients with little or no human interaction.

However, for private bankers and wealth managers, the personal client relationship or “high touch” relationship is a key factor for growth of their business. Does this mean that they don’t need fintech solutions to grow or survive? The main clue comes from customer behaviour and attitudes. Most independent customer research, including amongst millennials, indicates that investing is considered different from buying other goods and services digitally and that many investors value personal advice, albeit may not always be keen to pay much for it.

At the WealthTech Practice at Fintech Circle Innovate we believe that fintech solutions have an important role to play both for servicing existing clients and equally for addressing segments that are currently underserved. Maintaining the high touch client relationship while enhancing the high tech wealth and asset management platform can enhance performance.

Wealth and asset management firms have to review their internal processes and communication with clients and decide where tools provided by the fintech industry can be applied to enhance their proposition and operations. Such tools can be client facing – for example providing more accessible information in digital formats, – timely prompts and nudges, or portfolio management tools that enhance performance while giving relationship manager more time to spend with clients.

Implementing Fintech solutions will change wealth and asset managers’ activities not only by allowing them to spend more time with their clients but equally using tools such as robo-advisers to recommend investments. However, they will have to understand the analytics behind the robo-advisor’s results to ensure they really do meet a client’s needs. This requires the wealth and asset management firm to find the right fintech solution to grow their bottom line and allow their relationship managers to provide the best services to their clients.

Finding the right balance between high tech and high touch will continue to be a key factor in providing higher performance for wealth and asset management firms in this evolving digitised world.

Ian Ogilvie
International Retail Banking & Fintech Adviser. Expert, WealthTech Practice, FinTech Circle Innovate
[email protected]
After 34 years working internationally as a senior executive in a major Financial Services organisation, Ian has recently joined Fintech Circle Innovate as a Wealth expert.
Michael Koenitzer
Practice Head and COO, WealthTech Practice, FinTech Circle Innovate mkoenitzer@ ntechcircleinnovate.com @mwkoenitzer
After 20 years in banking and 8 years in consulting worldwide, Mike has joined Fintech Circle Innovate to build and manager their WealthTech Practice.


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