Wealth managers face a “fight for survival” as two thirds of chief executives at investment and private banks back an increasingly digital approach to financial management, according to a report by Temenos.
A survey by the financial software firm of 60 chief executives at investment and private banks as well as 35 high-net worth investors, found significant support for more technology-heavy wealth management.
The report attributed the findings to a transfer of wealth from baby-boomers to younger generations.
Schroders, Credit Suisee, Julius Baer were among the financial giants which contributed views to the study.
Peter Thuering, chief operating officer a Schroders, said: “I’m a strong believer in automation - making your processes more scalable so you can grow and take part in the consolidation process in the industry.
“For me, digitisation is not only a window into the bank through the client’s mobile, it’s about the electronic or digital end-to-end management of the entire value chain.
“Those who can manage data properly will win,” he added.
Credit Suisse’s Christian Huber, chief operating officer for private banking Asia Pacific said for wealth management, “it’s important to keep the client engaged and empowered”
“We strongly believe that when it comes to serving our clients, the combination of having our wealth managers work with clients in tandem with technology is a winning proposition.”
But Pierre Bouquieaux, product director wealth management at Temenos, said the findings point to a “fantastic opportunity” for wealth managers.
“These findings highlight that increasingly intelligent technology will help wealth managers redefine processes, find new efficiencies and build better relationships with their clients.”
The report found more than a third of high-net worth clients now demand some form of digital communication from their wealth manager.
Meanwhile more than 40 per cent of wealth managers believe a mix of digital and offline ways of communicating is ideal.