Wealth managers are facing a “fight for survival” against the threat of robo-advice, a new report has warned.
Temenos, a software specialist for banking and finance, has reported a “great transfer in wealth” from ageing baby boomers to younger generations.
This reshaping of the wealth management industry, the Temenos and Forbes Insights report found, will require greater efficiency and adaptation from firms.
The report found those from generations X and Y are moving “effortlessly across both the analogue world of face-to-face meetings and the virtual world of digital platforms that enable the fastest and accurate service they expect”.
But as well as needing to modernise technology, wealth managers should also hold back from “alienating older clients, still the bedrock of their business”, the report said.
Pierre Bouquieaux, product director of wealth management at Temenos, said: “With this generational transfer of wealth underway, firms must be alert to the challenges presented by a more complex set of customer needs – as well as growing cyber risks.
“Yet, this is a fantastic opportunity. These findings highlight that increasingly intelligent technology will help wealth managers redefine processes, find new efficiencies and build better relationships with their clients.”
The survey found that 34 per cent of high-net-worth clients surveyed demand some form of digital communication from their wealth manager.
Some 62 per cent were in favour of “the digitisation of wealth management services” but still want to meet often with an advisor.
Temenos and Forbes Insights surveyed more than 60 wealth managers and 35 high-net-worth clients for the study.