The Future of Wealth Management

Robo-advisors emerged after the 2008 crisis as fintechs aiming to democratize access to wealth management services. But most have failed to build sufficient scale as they struggle with customer adoption. Still, these fintechs have set a new standard for the role technological interfaces can play in the way financial services are struc-tured and consumed. And while the pandemic has accelerated the trend toward technological adoption, it has also highlighted the need for financial management solutions that offer a human touch – a hybrid approach.

This report examines the benefits for incum-bents of integrating hybrid approaches to their operational models. More specifically, we look at how such approaches allow incumbents to link the cost and maintenance efficiency of a purely digital robo-advisor with the human advice of conventional financial management services. The benefit is the ability to attract more clients by offering lower fees than legacy services, while still providing personalized guidance and advice from humans to support customers and reassure them amid market volatility. Looking ahead, we expect a digitally-enabled coach on financial matters in combination with a personal advisor for complex decisions to help individuals improve their financial health.

We hope you enjoy the report and invite you to share your views and experiences with us!