Get a handle on disruption, innovation and opportunity in investment technology
The digital evolution is enabling the creation of sophisticated software solutions that make money management more accessible, affordable and eponymous. Full automation is attractive to investors at an early stage of wealth accumulation, but hybrid models are of interest to investors who control larger amounts of wealth, particularly those who have enough wealth to be able to efficiently diversify their holdings. Investors can now outperform their benchmarks more easily using the latest tech tools.
The WEALTHTECH Book is the only comprehensive guide of its kind to the disruption, innovation and opportunity in technology in the investment management sector. It is an invaluable source of information for entrepreneurs, innovators, investors, insurers, analysts and consultants working in or interested in investing in this space.
- Explains how the wealth management sector is being affected by competition from low-cost robo-advisors
- Explores technology and start-up company disruption and how to delight customers while managing their assets
- Explains how to achieve better returns using the latest fintech innovation
- Includes inspirational success stories and new business models
- Details overall market dynamics
The WealthTech Book is essential reading for investment and fund managers, asset allocators, family offices, hedge, venture capital and private equity funds and entrepreneurs and start-ups.
Table of Contents
Preface viii
About the Editors xi
Acknowledgements xiii
1. Introduction
The Augmented Investment Management Industry 7
FinTech Disruption Across the Wealth Management Value Chain – Will FinTech Dominate the Wealth Management Model of the Future or is there Still a Place for Traditional Wealth Managers? 11
Embracing Emerging Technology 16
WealthTech – Business as Unusual 19
Welcoming an Artificial Intelligence Robot as a Colleague 23
Essential Digitization in Wealth Management 28
Becoming Millennial-Minded is Key for WealthTech 31
“To Infinity and Beyond!” – Building WealthTech Applications has Never Been Easier 34
2. Digitizing Client Advisory and Robo-Advisors
Ten Reasons Why Digital Wealth Management Will Become a Worldwide Market Standard 42
What Do Wealthy Clients Think About Digital Wealth Management? 45
Challenges of Digitizing Wealth Management Advisory 50
The Hybrid Advice Model 53
No “One Size Fits All” – Personalized Client Service and Social Selling in Wealth Management 57
How to Give “Sleep-Tight” Robo-Advice 62
How Gamification Can Attract Consumers to Sign Up 65
The Counter-intuitive Reality of Robo-Advice Demographics 68
How Emerging Technologies Will Change Emerging Markets – Welcome Robo-Advisor X.0! 71
Presentation Technology – Enriching the Client Experience in a Physical and Virtual World 74
Digital Super Powers – The Role of Artificial Intelligence in Wealth Management 77
Using Artificial Intelligence in Wealth Management 80
Digital Asset Management in 2020 – Seven Theses 83
Making Digital Advice Personal is as Important as Making Personal Advice Digital 86
3. Digitizing Wealth Management Operations
Digital Business Model for Wealth Management Operations as Matchmaker of Generations 94
How a Digital Architecture Can Lead to Tangible Business Results 97
The Personalization Pillar 101
Digitizing Wealth Management 105
Survival of the Fittest – Cyber Resilience 108
4. Digital Platforms, Products and Ecosystems
Wealth Management-as-a-Platform – The New Business Architecture with PSD2 116
Wealth Management – Preparing for a Digital Revolution 120
How to Digitalize Wealth Management at Banks 123
Key Success Factors in Gaining Market Share and Scale in Alternative Lending 127
Personal Financial Intelligence – AI and the Future of Money Management 132
Financial Forecasting and Portfolio Optimization in the 21st Century 135
AI-Powered Wealth Management Products and Investment Vehicles 138
Wealth Managers Can Deliver Effective Client Outcomes with a Data-Driven Investment Process 142
The Business Case for Gender Equality 147
Fiduciary Robo-Selection is Possible in a New Fund Order 151
5. Blockchain Applications in Asset and Wealth Management
Cryptocurrencies and Blockchain 158
How Blockchain Drives Innovation in Asset Management 162
Use Cases and Monetization Challenges of Blockchain Applications in Wealth Management 166
Blockchain as a Backbone to Asset and Wealth Creation 170
Dreaming of a Ledger-Free, Globally Connected Wealth Management Industry 173
Trust Arbitrage and the Future of the Wealth Manager – How Blockchain Innovations Can Crack the Code 177
Investment and Issuance Distributed in Blockchain 181
6. Founders’ Success Stories
Launching MeDirect Bank as a Challenger Bank 190
Empowering Women Financially – The Why and the How 194
Why I Left Goldman Sachs for FinTech 197
Moneymeets.com – Germany’s Leading Personal Finance Management Portal 199
The 100 Trillion Dollar Market Failure 203
7. Enterprise Innovation
Just Do It! Using the Buzz Around Innovation to Empower Banks and Asset Managers 210
Leveraging Corporate Innovation by Opening Banks to External Ecosystems 213
Wealth Management is Dead, Long Live Wealth Management 216
8. Global Overview of WealthTech
Is the Future of WealthTech Already in China? 224
WealthTech in Latin America 227
Challenges in the Japanese Wealth Management Market – Digital Issuance and Distribution of Japanese Real-Estate Securitized Products 231
How to Unlock WealthTech in Turkey 234
9. What is the Future of WealthTech?
The Networked Client 244
The Investment Managers of the Future are Going to be Millennials 247
Empowering Asset Owners and the Buy Side 251
An Industry Driven by Digital, Data and Artificial Intelligence 254
WealthTech – Taking Private Banking and Wealth Management Digital 257
The Wealth Management Canvas – A Framework for Designing the WealthTech Firm of the Future 260
The Ingredients of IKEA’s Approach for a Starry Wealth Management – Choose to Change the Competitive Arena in a Mature Sector 264
FinTech and the Wealth Management Challenge 267
Cognitive Decision-Making with “Insights-as-a-Service” 271
More Banking for Less Money 273
How AI Will Cause Robo-Advice to Completely Outperform Human Advice 275
Security in the Future of WealthTech 279
How China is Shaping WealthTech and the Future of Financial Services 282
From the Technological to the Financial Singularity – A Journey Without Return to the Future of Finance 285
Welcoming the 2058 Class of the “Galactic Academy of Wealth Management” 289
List of Contributors 292
Index 309
