Wealth managers have advanced their IT systems by 10 years in the space of one due to coronavirus.
The pandemic has also helped break down the difference between traditional wealth managers and robo-advisers.
A consequence is that it has brought a more hybrid approach into wealth management.
But a hybrid approach still has some way to develop as wealth managers are playing catch up to other industries.
A panel made these points at a Tisa conference on financial advice and guidance today.
BlackRock head of UK banks and digital channels Joe Parkin said: “In the past year it has become clear how much of a threat or advantage digital can be for business. If you have a clear digital strategy and are advanced digitally then the past year will not have been bad.
“To have a digitally focused strategy you must think about the entire ecosystem as it is not just about selling clients an individual product or investment solution based on their net worth. It is also about their needs and your ability to serve.
“We are seeing the rise of the digital investor and I believe it is going to upset the traditional wealth management model as we see more hybrid models going forward.”
The panel were asked how technology might improve and change the advice market over the next decade.
One panellist said they hoped advice with information can be largely automated.
Architas global head of innovation Zoe Robson added: “I would love to see everything we are talking about today done. Imagine investing so smooth and beautiful it is like going in and buying a Rolex watch.”
This article originally appeared on Money Marketing.
