FinTech

Financial health and new solutions from fintechs and banks

Contents

Topic in a Nutshell

1. Infographic: how FinTech is changing asset management
2. Video: the client journey within the WealthTech revolution
3. Infographic: WealthTech market map
4. Video: FinTech and WealthTech leveling the playing field
5. Video: investments in challenger banks pushing global WealthTech funding
6. Video: WealthTech and millennials
7. Infographic: the rise of WealthTech

Regional FinTech News

8. Where to make money with your money
9. Attracting migrant remittances for investments into the Kyrgyz economy
10. Bakai Bank launches anonymized precious metal accounts
11. Banks reviewing how consumers get perks from income cards
12. Survey of Kazakhstani choices in savings accounts
13. Online foreign currency deposit options in Uzbekistan
14. Yandex Money, Phinex Plus launch trust management service
15. Tinkoff to launch capital management company
16. Russia’s National Financial Association issues first roboadvisory accreditation

More from the FinTech World

17. Alternative investment startups allow users to buy shares of rare items
18. Startup Cleo moves beyond simple banking application to financial advisor
19. 6 startups that will reshape wealth management
20. Startup helps users retire with peace of mind about their finances
21. Revolut launches stock trading platform
22. Two startups allow everyday Nigerians to access high-yield government bonds
23. Additiv driving WealthTech democratization in Asia
24. 11 of the most notable WealthTech companies in Switzerland

BFC Recommends

25. The 5 Budget Apps and Personal Finance Tools
26. Videos: 6 wealth management startups share their views on the industry
27. Is crowdfunding the next great boom?
28. The impact of artificial intelligence on wealth management
29. Artificial intelligence-based tools could help drive organic deposit growth
30. FinTechs represent an opportunity for wealth managers, not a threat
31. 5 things wealth managers should keep in mind going forward
32. Wealth managers wise to not forget about creativity and the personalized touch

Topic in a Nutshell

1. Infographic: how FinTech is changing asset management

2019-09-10  

2. Video: the client journey within the WealthTech revolution

2019-09-10  

There are many points within the client experience, including onboarding, where high-quality digital interactions can help enhance client-bank relationships and give clients access to a broader range of services. https://www.youtube.com/watch?v=niihKFGO4Hw

3. Infographic: WealthTech market map

2017-03-24   www.cbinsights.com

WealthTech companies have been growing in recent years thanks to an increase in investments into this space. CB Insights recently categorized more than 90 of them into 7 main categories (based on the services and software they offer) and three main subcategories (based on the client group they serve) on this WealthTech market map.  

4. Video: FinTech and WealthTech leveling the playing field

2019-09-10  

New technologies within the FinTech and WealthTech spaces are bringing new opportunities for everyone to invest the same way the privileged do, opening up the space for new startups to offer bold new services to millions. https://www.youtube.com/watch?v=XwDVYGRM8WQ

5. Video: investments in challenger banks pushing global WealthTech funding

2019-09-10  

Almost USD 17 billion in investments in challenger banks over the past five years has driven the growth of WealthTech funding. In fact, investments have increased over that period at a CAGR of 49.7%, with the average size of deals almost quadrupling from USD 4.8 million to USD 18.6 million. https://www.youtube.com/watch?v=Y9Ku3A0x9EM&list=PLvqG7xXdquNliv2zgGRsMcpjFwwknNFp3&index=18

6. Video: WealthTech and millennials

2019-09-10  

CB Insights analyst Matt Wong gives a brief overview of WealthTech and millennials relationship with it. https://www.youtube.com/watch?v=YLd4i0LXhxk

7. Infographic: the rise of WealthTech

2018-03-05   fintechnews.ch

Evolving consumer expectations, the rapid adoption of technology and new competitors are placing new demands on today’s wealth management companies and reshaping the whole look and feel of the industry. Here’s a glimpse of the evolution of digital wealth management since 2011.  

Regional FinTech News

8. Where to make money with your money

2019-08-05   vc.ru

For those looking to invest funds as a way to make money with money, there are 7 main ways to consider in the Russian market:

  1. Bank deposits – this low-risk, low-profitability investment is the safest way to invest money. It also allows depositors to have instant access to their funds whenever they want.
  2. Currency purchases – this high-risk, low-profitability way to invest funds is contingent on currency exchange rates; however, there are too many factors (e.g. political factors, central bank decisions) for this to be a predictable and relatively safe way to invest funds.
  3. Precious metal purchases – this medium-risk, low-profitability way to invest funds is often considered as safe; however, there is some volatility in precious metals, especially those used in industrial production (e.g. silver and palladium).
  4. Stocks and bonds – this high-risk, high-profitability way can give investors great returns on investments or cause them to lose all or most of their funds. The key when making investments in stocks and bonds is to diversify risks.
  5. Investments in companies (crowdfunding) – this high-risk venture can increase returns; however, it’s also a much riskier venture than playing the stock market.
  6. Buying a ready-to-go business – while turnkey businesses can be a very profitable investment, it can also be extremely risky. It is important to have a sound business plan and understand the market very well when buying a ready-to-go business.

9. Attracting migrant remittances for investments into the Kyrgyz economy

2018-03-21   ru.sputnik.kg

According to economist Kubat Rakhimov, Kyrgyzstan has work to do if it is to ensure that laborers working abroad will make investments into the Kyrgyz economy. Specifically, he notes that the government needs to engage with the real economy and create attractive investment conditions. In this way, investments will happen naturally, including those coming from remittances sent from that laborers working abroad. It will also be important for financial institutions to create reliable tools that will allow money from remittances to easily be put into the financial and credit system for use in investments. Perhaps the most important step, however, is the creation of an investment securities market.

10. Bakai Bank launches anonymized precious metal accounts

2019-05-15   kaktus.media

Bakai Bank has launched a new service – depersonalized metal accounts. The service allows consumers to conveniently invest in grams of gold, silver and platinum. The depersonalized nature of the service means that consumers do not have to worry about transporting and storing metals. It also allows for easy and quick conversion into currencies. Although such accounts do not accrue any interest, consumers benefit from being able to convert metals into currencies at any time that is convenient to them, including when prices of the metals are higher than when they purchased them. Moreover, precious metals are generally a stable and reliable asset over longer periods of time.  Bakai Bank is the first in Kyrgyzstan to receive a license from the country’s national bank to operate such a service. 

11. Banks reviewing how consumers get perks from income cards

2019-03-22   www.vedomosti.ru

Income cards have become popular around the world due to their convenience and the benefits they provide. For example, some income cards not only serve as a bank account, they also offer reward programs and generate interest on existing balances. For banks, income cards have become a key way to attract and keep consumers, all the while also receiving commission income. For this reason, banks are continuously updating their income card offering. At the same time, banks are also placing conditions on consumers to receive benefits. For example, many banks tie interest benefits to card turnover, average monthly balance or type of income. Moreover, banks are generally afforded the chance to unilaterally change conditions for such cards at any time, placing the onus on consumers to track such changes. Although income cards are attractive for consumers and are likely to remain as key selling points for banks, consumers should be vigilant in monitoring the conditions for receiving card benefits.

12. Survey of Kazakhstani choices in savings accounts

2019-08-23   kursiv.kz

A recent survey of 1,600 Kazakhstanis from 45 locales around the country indicates that a majority (55%) pay attention to the financial information of financial institutions, including credit rating and amount of equity. At the same time, more than half also indicated that they are still not ready to give up high interest rates and cashback incentives to switch to those that have more financially sound figures. 46% of Kazakhstanis also use savings products for major purchases such as an apartment, while 29% use them for short-term expenses such as repairs and vacations. 8% indicated saving in high-yield deposit accounts, and 18% distribute savings between non-term and deposit accounts. Interestingly, a large majority (76%) trust the value of the Kazakhstani tenge, with 52% saving only in tenge and 24% savings in tenge and a foreign currency.

13. Online foreign currency deposit options in Uzbekistan

2019-08-09   www.spot.uz

With Uzbekistan’s national currency depreciating for 15 consecutive weeks and the United States dollar setting new records almost every 2 weeks, here is an overview of the 7 financial institutions in Uzbekistan that offer online foreign currency deposits:

  • Learnbank – the Comfort Deposit can be opened remotely and requires a minimum balance of USD 1,000 to qualify for the 4.25% interest rate.
  • Asakabank – the Contribution Mobile-USD account can be opened and managed through the bank’s mobile app. It requires a minimum deposit of USD 100 and offers a rate of 3%.
  • Asia Alliance Bank – the bank offers four online currency deposit options that require a minimum balance of USD 100 and offer interest rates of between 5.5% and 7%.
  • Agrobank – the bank offers Express Capital and Savings Express accounts that both require a minimum balance of USD 100. Interest rates vary between 4% and 6%.
  • Kapitalbank – the Online PRIME account can be opened via the bank’s mobile app and offers a 4% interest rate against a minimum balance of USD 500.
  • Infinbank – the bank offers the Innovative and Profit Online accounts. Minimum balances are USD 100 and USD 5,000 respectively, with rates of 5% and 6% respectively.
  • Hamkorbank – the bank offers 3 online deposit options: Sarmoya-6, Smart Plus Dollar and Smart Dollar. Minimum balances range between USD 100 and USD 500, with interest rates varying between 3% and 6%.

14. Yandex Money, Phinex Plus launch trust management service

2019-05-24   journal.tinkoff.ru

Yandex Money and Phinex Plus have launched Yammi, a trust management service to help investors invest in Phinex ETFs. Yammi is a roboadvisor that offers investment recommendations based on a computer algorithm that defines user profiles. Despite the promise of the new system, there are still issues with it. For example, the system tends to define users as having a more aggressive risk appetite than they actually do. Another concern is that account replenishment and withdrawals can only occur through Yandex Money, which itself comes with somewhat inconvenient limits and commission fees. In short, while Yammi is an intriguing glimpse into the potential future of investment management services, it is clear that its shortcomings need to be addressed before it will become an easy-to-use and convenient-for-consumers service that will radically change the way we invest.

15. Tinkoff to launch capital management company

2019-06-06   vc.ru

Tinkoff Bank Group plans on launching the Tinkoff Capital Management company in the 4th quarter of this year. The company will offer clients exchange funds for investments, with an entry threshold of just RUB 50. Funds will be tied to assets in both rubles and dollars, although the exact list of instruments has yet to be disclosed. It will be possible to manage investments only on the Tinkoff website or through a mobile application. The company hopes to eliminate the so-called “black box effect”, in which clients of management companies do not necessarily know the nature and condition of their investment portfolios at most times, by allowing users to look at the structure of their portfolio and make adjustments at any time. Tinkoff expects more than 100,000 clients within the first year of operation.

16. Russia’s National Financial Association issues first roboadvisory accreditation

2019-04-10   www.finanz.ru

Russia’s National Financial Association, a self-regulatory organization, has issued its first official accreditation to VTB Capital Investment under a program to provide individual investment recommendations to users via roboadvisors. Roboadvisors help clients form individual investment portfolios of stocks, bonds and index fund shares. After filling out a questionnaire, the roboadvisory service determines the client’s risk appetite and other specificities and then recommends a set of securities. The service also monitors the status of the portfolio in real time and makes suggestions for more profitable securities.The company expects that more than 150,000 clients will take advantage of the roboadvisory service. 

More from the FinTech World

17. Alternative investment startups allow users to buy shares of rare items

2019-07-02   forbes.kz

A relatively new concept in making investments is allowing investors to buy shares of rare cars and other rare items. For example, New York-based company Rally Rd. offers users the chance to buy shares in rare cars like Ferraris and Mustangs for as low as USD 5 and plans on adding new assets (e.g. wine, whiskey, watches, sports awards and rare books) in the near future. Similarly, Brooklyn-based startup Otis plans on launching in the near future and will allow users to invest in art masterpieces.  The trend for alternative types of asset investments began with the real estate industry in 2010, when startup Fundrise let users acquire small shares (as low as USD 500) of real estate. The main goal of all these types of startups is to solve problems with access to capital and liquidity. Such startups also allow investors to diversify their investments and invest in something that does not depend on stock market fluctuations. Although the alternative assets market is growing, it is still small and in its infancy. As such, it remains to be seen just how popular such services will become and what their real impact will be in the future. 

18. Startup Cleo moves beyond simple banking application to financial advisor

2019-04-25   vc.ru

A seemingly infinite number of startups and simple banking applications offer users the ability to easily track and view their spending habits. But English startup Cleo is taking this a step further by not only letting users track where their money is going but also letting them actively influence this. Cleo, a self-described financial advisor, helps users budget by letting them proactively set spending rules (i.e. no more than USD XX to be spent at restaurants per week/month). Cleo also hopes to eventually give users the chance setup blocked transactions that will automatically block any transaction that violates the user’s rules.  Cleo works by linking banking information with the Facebook Messenger app. Cleo then communicates with the user as a chatbot via the Messenger app. Cleo also offers users the chance to save money in a separate account and, via a paid subscription, get cashback rewards.

19. 6 startups that will reshape wealth management

2019-09-24  

FinTech startups are reshaping the financial world, including wealth and asset management. Here are 6 WealthTech startups that are promising to change the way we manage our wealth:

  1. Cred – Cred uses artificial intelligence to help financial institutions deliver highly-personalized investment portfolios to digital clients.
  2. Responsive.ai – not just another roboadvisor, Responsive.ai is a hybrid wealth advisor solution for enterprises that helps managers grow client wealth and loyalty by providing personalized and adaptive services at scale.
  3. Bambu – founded in 2016, this Singapore-based company uses their own roboadvisory technology to find the right personalized investment strategies for each client’s needs. Bambu also provides various live and past data to offer a unified view of markets.
  4. Sarwa – this Dubai-based FinTech company combines innovative technology and human advice to make expert investing available to everyone. The platform’s algorithms and human advisors help Sarwa clients open an account in minutes via facial recognition, track their goals via an intuitive dashboard and rebalance their portfolios when the market causes their investments to drift from their target.
  5. Handcheque – this Vienna-based company has a mission to make payments easier and more convenient. To this end, they have developed a smartcard that enables consumers to store all their payments and loyalty cards on one certified Mastercard card.
  6. AdviceRobo – a software solution that increases acceptance rates for credit applications while still maintaining the same risk level, AdivceRobo uses artificial intelligence that combines structured and unstructured data to generate a big behavioral picture for self-employed, startups, millennials and other thin-file consumer segments.
  Source

20. Startup helps users retire with peace of mind about their finances

2019-07-31   www.forbes.ru

FinTech startup Kindur is helping put retirees at ease by helping them manage their retirement funds and ensuring they have enough money for the rest of their lives. Launched in April, Kindur is a free-to-use service that, based on a series of user responses, offers users a free preliminary plan containing a number of financial recommendations. Kindur coaches are also available to discuss options with users. If a user decides to ultimately become a Kindur client, they simply transfer their investment accounts to the platform and pay an annual fee of 0.5% of their investment assets. The company also offers clients the Horgan Approach of fixed annuities, which many hail as a great option for those with savings but no pension plan beyond social benefits.

21. Revolut launches stock trading platform

2019-08-01   www.cnbc.com

British FinTech firm Revolut is jumping into the online brokerage space with its own commission-free stock trading platform, which is being run in partnership with U.S. broker DriveWealth. The company launched the service, which lets users buy or sell popular stocks with the tap of a button, as a way to lure millennials who normally shy away from investing. The Revolut service also allows users to buy fractions of shares for as low as USD 1. The company hopes that this will allow young users to develop their personal wealth from a younger age in a way that is comfortable, easy and low-cost. Revolut’s service doesn’t currently charge commissions; however, it will eventually apply pass-through fees where applicable and a 0.01% custody fee. The company also hopes that users, once comfortable with the service, will opt to move beyond its basic services and pay for premium offerings.  Revolut currently has over 6 million users and was last valued at USD 1.7 billion in value.

22. Two startups allow everyday Nigerians to access high-yield government bonds

2018-07-21   techcrunch.com

In emerging market countries where economic volatility is a way of life, there aren’t a lot of relatively safe options for the up-and-coming middle class to save their money. In Nigeria, two startups are giving Nigerian investors a way to save their money through high-yield government bonds, which can absorb wild swings in the value of the country’s local currency and still provide a healthy return. While both CowryWise and Piggybank offer users relatively simple savings solutions, there are subtle differences between the two. For example, the CowryWise platform uses Meristem Financial as an asset manager for investments in the bond market, whereas Piggybank works primarily with banks. Piggybank also requires a three-month savings period before investors can withdraw funds, whereas CowryWise lets users withdraw funds immediately. Despite the differences, both are important steps forward in allowing Nigerians the chance to save and make sound investments.

23. Additiv driving WealthTech democratization in Asia

2019-05-23   www.additiv.com

Zurich-based WealthTech company Additiv has become a worldwide leader in the field of digitization for wealth managers. In Asia, the company is driving a wide-angle perspective and helping wealth management become more democratized, enabling more and more people to access wealth management solutions – all thanks to the rise of digital innovations.  Additiv is accomplishing this through a combination of ensuring its services (especially its roboadvisory services) are fine-tuned to Asian markets and giving consumers greater information and control over their investment holdings. Specifically, Additiv is committed to providing its users with a 360-degree view of all their holdings and providing them with the functionality and flexibility to maximize the use of their holdings. Perhaps most importantly is that Additiv accomplishes this through an easy-to-use and simple-to-access online platform that has published APIs that allow for financial institutions to be integrated into the Additiv system with minimal effort. While the full impact of Additiv in Asian markets remains to be seen, it is clear that the company is poised to become a market leader in the region and drive innovations well into the future.

24. 11 of the most notable WealthTech companies in Switzerland

2019-09-24  

With 75 companies operating in the sphere, WealthTech has become a thriving subset of FinTech in Switzerland. Here are 11 of the more notable Swiss WealthTech companies:

  1. AAAccell – a spin-off company of the University of Zurich, the company specializes in risk and asset management and uses the latest research on quantitative finance, artificial intelligence and machine learning solutions.
  2. Additiv – offering digital solutions for financial services providers, Additiv uses a unique software platform for the creation and operation of various services and products that target different consumer segments.
  3. AlgoTrader – offering a fully-integrated algorithmic trading software solution for quantitative hedge funds, AlgoTrader allows for the automation of complex, quantitative trading strategies in equity, forex and derivative markets. AlgoTrader is also the very first and only algorithmic trading software product to allow automated trading of Bitcoin and other cryptocurrencies.
  4. Bitcoin Suisse – Bitcoin Suisse provides private and institutional clients with a wide-range of crypto-related services such as brokerage (high volume trading) services, hyper-secure storage of crypto-assets and bespoke ICO-services.
  5. Clevercircles – launched by Bank CIC, Clevercircles is a roboadvisor that allows investors to tactically adjust their portfolio on a regular basis and provides them with the option of joining forces with other participating individuals, groups and even professionals to compare market expectations.
  6. Crypto Finance – founded in June 2017, the holding company provides blockchain-related services through three subsidiaries: Crypto Fund AG (the first regulated asset manager for crypto assets authorized by FINMA), Crypto Broker AG (a crypto asset trader) and Crypto Storage AG (a crypto asset storage infrastructure solution provider).
  7. Descartes Finance – a leading Swiss digital wealth manager, Descartes Finance provides a digital investment platform that uses client information to generate a personal investor profile and offer an investment proposal that matches client needs.
  8. NVISO – a company that provides artificial intelligence solutions that detect and predict human behaviors using visual intelligence, NVISO products and services consist of applications, software development kits and data services that are used to measure and increase productivity as well as accurately perform specific business functions such as the automation of consumer-facing operations.
  9. Simplewealth – an automated investment management company, Simplewealth aims to make investment easy with secure online banking services and tailored plans.
  10. Selma Finance – Selma Finance acts as a personal investment assistant who looks into all aspects of a client’s life and puts together an individual investment plan that fits their goals and future.
  11. Viac – the first-ever 100% digital solution for retirement planning (via mobile app) in Switzerland, Viac offers users three strategies for retirement investments: global, Swiss and global sustainable. 

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25. The 5 Budget Apps and Personal Finance Tools

2019-10-03  

Understanding personal finances and the tools to manage them are an important step toward financial literacy. Fortunately, modern technology has made this step easier to obtain for more people. We’ve scoured the internet and app stores to compile this list of the top 5 most interesting personal finance apps, at least one of which will no doubt help you improve your own personal finance skills with nothing more than the flick of your fingertip. CoinKeeper Price: free trial, then USD 3.99/month or USD 15.96/year (some functions are only available in the paid version) Availability: iOS and Android Description: incomes, savings and expenditures are represented as piles of coins. A simple drag-and-drop action is all that is needed to record any financial transaction (incoming or outgoing). You can even set monthly limits on spending categories. Useful functions: recognition of bank SMSs (for Russian banks), choice of preferred budgeting period (weekly or monthly), data exports (in an MS Excel format), joint budgeting, password protection, multiple device support, notifications Analogues: Mint, Prism https://www.youtube.com/watch?v=k3l57QTuQVM Spendee Price: free 7-day trial and free basic plan; paid plans for multiple wallets (users) start at USD 1.99/month or USD 14.99/year Availability: iOS and Android Description: with this app, costs can be monitored manually or automatically via a synchronization with a bank. Spending estimates can then be tracked in a variety of ways, including through the use of an easy-to-read pie chart. Useful functions: extended statistics, easy setup for savings, a common account for family and friends, bill/receipt photo support, notifications of regular expenses, data backup, connections to electronic and cryptocurrency wallets, multi-currency support Analogues: Toshl Finance   https://www.youtube.com/watch?v=XPaYNlla-6A Monefy Price: free and paid (USD 2.48) versions available Availability: Windows, iOS and Android Description: this app allows you to record incomes and expenses (even before initial setup of the app) by simply entering amounts and hitting either a plus (for incomes) or minus (for expenses) button and selecting an appropriate category. Useful functions: password protection, synchronization with other devices (via Google Drive or Dropbox), accounting in several currencies Analogues: Daily Budget   https://www.youtube.com/watch?v=chflLn-ZKc0  You Need A Budget (YNAB) Price: free 34-day trial, then USD 6.99/month (billed annually at USD 83.99) Availability: Windows, iOS and Android Description: according to YNAB developers, the most important aspect of financial management is planning. The app works by asking you to categorize each transaction. When it detects an unexpected expenditure, it automatically adjusts your budget (by, for example, reducing the available budget for “entertainment” expenses). Currently, the app only supports one currency and requires a desktop installation. Useful functions: joint budget management Analogues: Goodbudget   https://www.youtube.com/watch?v=C4VJ4v_Y_d8   Tyazhelovato  Price: free Availability: iOS and Android Description: this app tells you how much you can spend each day once you indicate the frequency and amount of any income you receive. If daily expenditures exceed this amount, the app recalculates your budget. The app currently does not support statistics or accounting as its main function is only to support you in getting through to your next salary. The app is also only currently available in the Russian language. Useful functions: support in three currencies: RUB, USD and EUR Analogues: Bills Monitor    

26. Videos: 6 wealth management startups share their views on the industry

2019-10-01  

Startups are playing a huge role in innovating the wealth management industry. Our friends at Plug and Play got in touch with 6 of the most relevant ones to get their views on the industry they are helping reshape:

Grove https://www.youtube.com/watch?v=Dq7Xzl0oMLo Agolog https://www.youtube.com/watch?v=67bSea-oofk Rocket Dollar https://www.youtube.com/watch?v=USAR8tFtqEo Say https://www.youtube.com/watch?v=CyyRGfzuFZE Compound https://www.youtube.com/watch?v=ZpQWWDwiW-A Accern https://www.youtube.com/watch?v=4iNETX01xgw  

27. Is crowdfunding the next great boom?

2019-07-22   vc.ru

The boom of technological innovations and creativity in the financial sphere has given us numerous interesting and beneficial concepts. One the more recent among them is the idea of collective investments (i.e. crowdfunding). In fact, crowdfunding platforms have become very popular in the last few years, with the crowdfunding market growing by almost 50% globally each year. Moreover, 2019 saw the emergence of several new players, and many FinTechs are hoping to get in and carve out their place in the growing market. But does this mean that a crowdfunding boom is in our future? While it very well may be, there are a number of things that need to be figured out before it becomes a standard place to invest substantial amounts, including regulatory issues, taxation issues, making easy-to-understand portfolios and how to handle delinquencies and defaults. That is not to say that crowdfunding should be avoided completely. In fact, it is likely to become a great investment tool in the near future. For now, however, investors need to realize that there is a moderate-to-high risk in such investments and that it should not be the only place where investments are made. Regardless, the future looks bright for crowdfunding.

28. The impact of artificial intelligence on wealth management

2019-10-01  

For better or worse, all kinds of industries use artificial intelligence nowadays, and wealth management is no exception. In fact, artificial Intelligence is one of the main trends in the wealth management industry and will change the industry forever for both consumers and companies alike. The three biggest impacts are likely to be:

  • Consumer behavior being easier to predict – this will allow wealth managers to customize investment products and improve consumer experiences, maximizing conversion and consumer loyalty.
  • Regulations being under control – artificial intelligence (and its capacity to sift through, analyze and understand truly massive amounts of data) will make compliance processes easier, faster and much more accurate.
  • Consumers being happier – consumers are likely to notice three main benefits from artificial intelligence in the wealth management industry: lower entry barriers, lower costs and better offers (due to increased competition). All of these tend to make consumers happier. It will also help the unbanked and underbanked access wealth management tools.
  Source

29. Artificial intelligence-based tools could help drive organic deposit growth

2019-07-23   thefinancialbrand.com

Traditional banks and credit unions have been losing the battle to attract deposits in a hyper-competitive environment. Many have attempted a number of different efforts to reverse this trend and drive organic growth; however, such efforts are often difficult to sustain and have seen mixed results at best. Some are now turning to artificial intelligence as a way to harness data analytics and deep insights, resulting in them being able to offer consumers a more personalized, enriched and financially-beneficial banking experience. Soon, it is expected that innovations stemming from artificial intelligence will not only drive deposits back to these financial institutions, they will also become the new bar for what consumers expect. Financial institutions that embrace such smart innovations now stand to benefit from more robust deposit growth as well as deeper and more long-lasting consumer relationships.

30. FinTechs represent an opportunity for wealth managers, not a threat

2019-10-01  

FinTechs are entering the wealth management industry at a record pace, and many traditional wealth management companies are not thrilled. But the fact is that FinTechs are bringing speed, radical innovations and visibility into the market. Although nobody can predict the next big disruption and how it will play out, nobody also wants to be Yahoo! missing out on purchasing Google for USD 1 million or Blockbuster declining a partnership with Netflix. Traditional players should wake up and examine the benefits of collaboration or risk being at a disadvantage in an industry that is about to get even more competitive.   Source

31. 5 things wealth managers should keep in mind going forward

2019-08-12   fintechnews.ch

As the wealth management industry evolves, wealth management firms must reinvent themselves and take advantages of cutting-edge technologies to enhance consumer experiences and provide greater personalization. Here are five key things wealth managers need to keep in mind going forward:

  1. Consumers are not satisfied with current digital offerings. According to a recent survey, less than 50% of respondents were satisfied with mobile and online wealth management platforms, especially regarding accessing portfolio information, executing transactions and obtaining advice/services.
  2. There is a need to increase investments in product innovation. A recent report found that investments in front office transformation can boost wealth manager performance 8–15%, but many wealth managers feel they are forced to work using legacy systems that don’t allow a seamless and simplified experience.
  3. BigTechs are the biggest threat to wealth managers. BigTechs like Amazon, Google, Alibaba, Apple and Facebook are expected to be one of the greatest industry disruptors due to their digital capabilities and strong interest in setting up full-service online communities.
  4. Personalization will be a key area of differentiation going forward. Reports indicate that only about 40% of consumers are satisfied with the personalized offerings of their wealth managers. Wealth managers are advised to prioritize investments in analytics, personalization at scale, data harmonization, management and storage in order give advisors the tools they need to deliver suitable tailored services.
  5. Artificial intelligence is a game-changer. The adoption of emerging technologies like artificial intelligence, digital analytics and intelligent automation will be critical for enhancing wealth manager efficiency and bolstering consumers’ service experience.

32. Wealth managers wise to not forget about creativity and the personalized touch

2019-07-08   www.forbes.com

With the wealth management industry consolidating and moving towards standardized and streamlined processes based on technological solutions, there will inevitably come a breaking point when technology for technology’s sake becomes old and consumers want more. In this context, it will be important for wealth managers to offer a mix of creativity, simplicity and effectiveness that moves beyond a mass-market, cookie-cutter approaches and towards ones that take into account the specific needs and objectives of consumers and their families. This creativity and personal attention, however, should extend beyond what is expected from traditional investment strategies (e.g. a charitable remainder trust). The most effective wealth management strategies in the future will require intimacy and a personal touch. As such, wealth managers will be smart to remember that there will never be a substitute for personal service.