According to a recent EY report on digital disruption in the sector, most high net worth clients would already swap a relationship manager for better digital capabilities.
While most private banks and wealth managers recognise the need for change, many are still not embracing it, choosing instead to rely on dated business models, legacy technologies or an M&A strategy to win the race for safety in scale.
As agile FinTechs cherry-pick high value niches and Silicon Valley giants prepare to leverage their vast technology assets and trusted brands as ‘TechFin’ financial services, the financial services playing field is being reshaped. Incumbent banks and asset managers must not only grow AUM, they must transform their business models, reduce costs, sharpen their value propositions and improve their user experience before the disruptors eat their lunch.
Digital transformation is especially important because the next generation of investors – many of them tech entrepreneurs – spend their wealth on luxury brands and have high technical and design expectations. They do not understand why traditional private banking and fund management remain so ‘analogue’. Meanwhile, millennial inheritors of wealth have very different attitudes to wealth than their baby boomer parents and will be looking for innovation in products and services to meet their individual needs.
All these factors represent urgent challenges that leaders of private banks and wealth managers must grasp and resolve if their brands are to prosper in a transforming wealth management landscape.
In our latest research report we ask six big questions for wealth managers: What business are you really in? How well do you know your clients? Can you be a scale player, or do you need to own your own niche? How will the digital revolution impact your current business? Do you have a plan to transform your technology platform? And is your brand an asset or a liability in a connected, digital world?
Download our latest report Wealth management and the digital revolution
Nucleus Founder & CEO
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