Although wealth management is more than 200 years old most of the time its providers have been following the same best practices. Massive digitalization and regulation that we have witnessed in recent years changed it. The data shows that most providers have been innovating slowly and some are still trying to do their business the traditional way.
The biggest obstacles that are preventing the change are fear of losing customer relations managers and their customers and a long bullish market which wasn’t forcing wealth management providers to do those hard decisions earlier. Although the customers base and amount of assets traded have grown the profits of this sector haven’t grown in ten years (2007-2019). Covid-19 pandemic should be a last call for providers who should focus on innovations that should have been done a long time ago.
For every area of FinTech, we create a strategic table in which we identify incoming trends, key factors, challenges, and comparison of the state in the Czech Republic to other countries to provide companies an overview on how to implement the newest technologies.
|Incoming trends||Key factors||Challenges||Comparison to world|
|ESG investing||The growing interest of society in environmental and social topics||Combining high returns with environmental and social factors||It’s gradually beginning to appear also in CR|
|Robo-advisors||Automated and simple investing||Managing complex situations and customization||It’s gradually beginning to appear also in CR (Portu, Fondee)|
|Digitalization of customer support||The emergence of chatbots and automated systems||The ability to derive specific client needs and acting accordingly will separate the best and others. Personal contact will be still important especially for HNW clients||It is in an active process in CR|
|Digitalization of securities||Legacy infrastructure with high costs are still being used on capital markets, regulations, automatization, transparency||Standardization and propper digitalization||We didn’t find any Czech company working on this trend|
|Using AI and ML for the acquisition of clients||It has been a manual and costly process||Fulfill expectations of customers that are used to the BigTech level of customer experience||It’s gradually beginning to appear also in CR|
|Using advanced analytics||The need to increase alpha to prevent clients from switching to passively managed funds and ETFs, an opportunity to cut costs and increase effectivity||Unwillingness to invest, relevant data selection, lack of experience, system limitations||It’s gradually beginning to appear also in CR|
|High personalization if investment products||Machine learning and visualization tools are lowering the costs||The goal is that asset managers should be able to create personalized investment products by just clicking a button.||We didn’t find any Czech company working on this trend|
|The shift of demography of a typical investor||Emerging markets, inheritances, HNW||Clients are switching from traditional asset management providers to BigTech||It is in an active process in CR, mainly foreign solutions such as Revolut are used|
|Emerging markets will surpass the developed ones||Fast-growing wealth in Asia (ex. Japan), growing HNW and ultra HNW segments||Predictions are forecasting that Asia will overcome Western Europe and will become the second most wealthy area of the world by 2022||Irrelevant|
- Digitization and the green transformation of FinTech and WealthTech industry
- Roboadvisory: a perfect storm in wealth advisory services
- PropTrading with FTMO founders Mark Vasicek and Otakar Šuffner
- Scoring of stocks using AI with Vladimír Vacula from Analytical Platform
- InvestNight 2022
- Global WealthTech Summit 2022
- Asia Wealth Summit
- Super Connect Series Showcase (FinTech)
- FinTech Pitch Night
- ALFI PE & RE Conference