How Much Is Technology Reshaping The Wealth Management Ecosystem?

Technology disrupting the Wealth Management ecosystem

Please read the following article from Forbes on how digital technologies are changing the expectations of investors and advisors:


How Much Is Technology Reshaping The Wealth Management Ecosystem?

The wealth management advisory ecosystem is undergoing major disruption primarily because of the shifting demographic as wealth shifts hand from Baby Boomers to the millennials. Digital technologies are acting as catalysts to this disruption, and the expectations of both the investor and advisor are changing rapidly.

The compensation structure for advisors has also seen a change from traditional commission-based models to goal-based frameworks. Advisors need to be equipped with deep insights about their investors to be able to service them in a hyper-personalized manner. Finally, the new generation of investors who value holistic advice is often juggling multiple investing strategies with conflicting goals.

As more advisors retire from the industry and the next generation of advisors joins it, new advisors will look to bridge the gap between tradition and innovation. Furthermore, transitioning from a commission-based transactional approach to a fee-based advisory model now requires advisors to deliver a more holistic approach based on goals — requiring a deeper understanding of a client’s needs. With that in mind, it’s important for leaders in the wealth management industry to understand how exactly new technologies intend to augment the expertise of advisors.