As the world becomes more prosperous, the future of wealth management is bright. The size of the industry in some world regions will grow at a healthy pace.
The future of wealth management will be increasingly tech-driven, with a continuous improvement of tech-heavy aspects of the service. Most product innovation will be led by firms that have stronger execution skills or larger R&D budgets, while the rest of the firms attempt the catch-up game.
We may also see some consolidation in the industry. Each geographical area will be dominated by a few players who continually invest over many years in tech-enabled features tailored to the specific needs of that region’s clients.
Robo advice firms will come up with more features to further automate various aspects of wealth management. For example, in Australia, robo advice will encompass many activities of discretionary investment management through MDA or investing through an SMSF.
In the coming years, many existing asset management companies, and wealth management divisions in some banks will roll out their robo advisory services. They either build the tech capability themselves, acquire an existing robo advice firm, or partner with an existing robo advice firm.
Related information
Read the answers to the related questions:
- Will there be oligopoly in the robo-advice industry?
- Will robo advisors survive as independents or just as tools on bank websites?
- Is it too late for a new firm to enter the robo advice business?
- What’s going to happen to the robo-advisors the next time the market crashes?
- Regulatory changes that paved the way for robo advice in Australia
- What is robo advisor 2.0?
Also refer to the related knowledge resources:
- An introduction to wealth management
- An introduction to discretionary investment management
- Financial advisers and discretionary investment management
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