The wealth management sector is a significant part of the financial services industry, and one which can greatly benefit from advances in technology/fintech. Since wealth management involves dealing with a variety of clients and information, technological advances in the industry are often based around (but not limited to) the collection and storage of data. Here are some of the most significant technological advances which are reshaping wealth management.
Some of the most significant technological advances of the 21st Century have been in automation, and the wealth management industry is sure to continue to benefit from such developments. Chatbots, for instance, are applications which can collect and analyse masses of data from the people using the website, and then use this accordingly.
They help with customer service, and can provide basic advice to website visitors. Automation technology is still arguably in the early stages, and so it is sure to continue to revolutionise many aspects of wealth management as more and more uses become apparent.
Online security has come on leaps and bounds in the last decade, and this has proved to be very useful for wealth management. Clients’ personal data, which needs to be protected at all costs, is now far safer than it used to be, and those wealth management companies which invest in the very best data security can offer their clients unrivalled peace of mind.
Data protection has become particularly important with the recent introduction of GDPR, which regulates how data is collected and stored. Those firms which do not comply and lose their clients’ data could face very hefty fines, so advances in data protection technology have been welcomed by the industry.
Artificial intelligence, like with chatbots, is also allowing wealth management firms to tailor their service to different clients with greater ease. By collecting information on clients and their activities from different sources, AI applications can paint a clear picture of their life and requirements to a financial advisor.
This can then help the advisor to make investment decisions on their clients’ behalf, and ensure that the service they provide is as streamlined and effective as possible.
Change in the financial services industry is being driven by technological advances, and it is likely that wealth management firms and the services they offer will look remarkably different in the years to come. With this in mind, it will be exciting to see just how far technology can go in helping improve and revolutionise financial services.