Are clients of wealth managers underserved?

Wed 18 May 2016 Author: Garry Category: Points of view

Wealth management is currently in a state of flux.

New entrants with online automated solutions - so called robo-advisors - are appearing day in day out. Almost all of them offer a limited set of options and simplified versions of portfolios. This can appeal to price-sensitive clients. Their detractors point instead to the risk of commoditizing an activity, wealth management, that is meant to be inherently based on a human to human relationship of trust and expert advice.


Unfortunately, many traditional wealth managers have partly lost their ability to offer just that: a genuine, personalized and expert service. While busy responding to tougher regulation and involved deeply in inefficient operations, the time available for them to deliver personalized investments and interactions to their clients has dangerously shrunk.

In both cases, the risk is high then that the end client - mass affluent, HNWI or UHNWI - ends up underserved, not benefiting from wealth management in its purest and noblest sense.

In order to regain their advantage, wealth managers should not fear technology but instead embrace it to stay relevant, in their own best interest and that of their clients.