Like a wide range of other industries, the WealthTech sector has seen digitisation accelerate massively recently – with the pandemic only serving to speed up this trend.
In a recent blogpost by MyDocSafe – a document security software provider – the company examined key trends in the WealthTech sector and what the future has in store for the space.
MyDocSafe stated that wealth management as an industry has always been on the cutting edge of AI, with a data-driven approach in product and pricing through to client prospecting and experience seen as key areas of AI-linked innovation.
How is it being used today? The company detailed that AI is currently being used to interpret a vast range of data streams and to relieve wealth managers or time consuming and repetitive tasks. The firm also cited research by Garner, which predicted 75% of companies by 2024 will have moved from piloting to operationalising AI.
Furthermore, AI is also helping to provide greater transparency and collaboration within wealth management teams. MyDocSafe remarked that wealth management firms are commonly made up of several specialists in niche areas, which can run the risk of information becoming siloed within individual teams. AI in this respect helps them to ‘join the dots’ within by using robotic process automation, conversational AI, automated decision making and process mining to deliver improvements.
Another key area where AI is making a huge difference in wealth management is in the area of client onboarding. Manual onboarding can often be burdensome and slow, so the move to AI-informed onboarding helps to automate the process and make it simpler and more efficient to onboard clients.
One of the most vital demands that connects all trends in the wealth management space is the need for greater transparency and a more efficient service. In the burgeoning crypto space, MyDocSafe highlighted how those who are entered the wealth management sector due to its surge will be expecting their equity portfolios to be managed in a way that leverages a ‘high-tech user experience’.
The company added that many of the emerging client profiles can be characterised by a heightened demand for transparency, a need for instant answers and more intuitive interfaces. While the importance face-to-face meetings amongst this client group is likely to fall, MyDocSafe said it believed that this shouldn’t be interpreted as a reduced desire for communication amongst clients.
There will also be a growing need for technical solutions to meet the evolving expectations of clients, with trust, security and self-service access to information all found to be highly important to wealth management clients, and as a result, companies that work with software that leverages client portals will ‘carry significant advantages’.
A third and highly prescient trend that is key in regard to the evolution of WealthTech is the growth of blockchain technology. One of the key impacts that blockchain will likely have on the aforementioned sector is likely to center around speeding up ‘know your client’ standards through onboarding. MyDocSafe referenced the case of the Australian Stock Exchange, which has revealed it plans to adopt a blockchain solution to take care of all bookkeeping, clearance and settlements involved in trading shares by 2023.
The full blogpost can be read here.
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