I have often come across this question. Yes, there will be a considerable impact on jobs in the wealth management industry due to automation and technology advancements, such as robo advisers. However, the following job profiles would persist.
1. Portfolio construction
In the future, artificial intelligence will be used to make better sense of the vast data available to us, and help us in determining good investment opportunities. However, portfolio construction is a subjective activity and is based on an investment methodology designed by human perspectives.
So, irrespective of the extent of technology usage in portfolio construction, this task will be overseen by investment experts.
2. Specialists in comprehensive, complex financial advice
For individuals with a high amount of investible assets, there will be a host of complex wealth management needs such as tax planning, estate planning, succession planning, philanthropy, and alternate investments. It is difficult to automate the processes and decision-making involved while catering to these needs. Hence, such tasks will be handled by domain experts.
3. Compliance and ethical oversight professionals
Wealth management operates within stringent regulatory frameworks. Compliance and ethics roles require interpretation, judgment, and oversight to ensure adherence to evolving laws, regulations, and ethical standards. Professionals managing compliance must assess subtle nuances, adapt rapidly, and make judgment-based decisions in scenarios robots can’t reliably interpret or anticipate.
4. Business development and Client relationship for ultra-high-net-worth individuals
Ultra-high-net-worth individuals (UHNWI), those with more than $30 million in investible wealth, are engaged by business development and client relationship personnel for new business or to retain them. The work involves networking, building rapport, and understanding the intricate social and professional circles in which these wealthy consumers move. The work of the rainmakers is based on their interpersonal skills and their ability to forge connections that lead to business growth.
Related information
Read the answers to the related questions:
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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