From AI to Machine Learning, 4 ways in which technology is upscaling wealth management space – Zee Business

WealthTech(Technology) companies have rapidly spawnedinrecent years. Cutting-edgetechnologies are making their wayinto almost allindustries from manufacturing to logistics to financial services.

Within financial services,technologies such as data analytics, ArtificialIntelligence, Machine Learning among others are leading the wayinchanging business processes with faster turnaround time and superior customer experience.See Zee Business Live TV Streaming Below:

Astechnology evolves, business models must be changed to remain relevant. Thewealthmanagementsectorisalso notinsulated from this phenomenon!

Ankur Maheshwari CEO-Wealth, Equirus decodes the impact of newtechnology advancementsinthewealthmanagementindustry:

Wealthtechupscalingthewealthmanagementspace

Wealthtechaids companiesindelivering a more convenient, hassle-free and engaging experience to clients at a relatively low cost.

The adoption of new-agetechnologies such as big data analytics, ArtificialIntelligence (AI), and Machine Learning (ML) are helpingwealthmanagementcompanies stay ahead of the curveinthe new age ofinvesting.

While the adoption of advancedtechnologies has been underway for quite some time, the pandemic has rapidlyincreased the pace of the adoption oftechnology.

New ageinvestors and the young population are usingtechnologyina big way. Thisisevident from the fact that the total digital transactionsinIndia have grown from 14.59 billioninFY18 to43.71 billioninFY21 as reported by the RBI.

According to a report released by ACI Worldwide Globally, more than 70.3 billion real-time transactions were processedinthe year 2020, withIndia at the top spot with more than 25 billion real-time payment transactions.

Thisindicates the rising use oftechnology globally andinIndia within the financial servicesindustry.

There are various areas wheretechnology has had a significant impact on client experience and offerings ofwealthmanagementcompanies.

Client Meetings andInteractions

Inthe old days,wealthmanagers would physically meet theinvestors to discuss theirwealthmanagementrequirements. However, recently we see that a lot ofinvestors are demanding more digital touchpointswhichoffer more convenience.

Video calling and shared desktop features have been rapidly adopted by bothinvestors andwealthmanagers to provide a seamless experience.

24*7 digital touchpoints available

Technology has also enabled companies to provide cost-effective digital touchpoint solutions to clients that enable easier and faster access to portfolio updates, various reports such as capital gains reports, and holding statements and enable ease of doing transactions.

Features such as Chatbots and WhatsApp-enabled touchpoints are helpingindelivering a high-end client experienceina quick turnaround time.

Portfolio analytics and reporting

Data analytics has not only augmented the waywealthmanagers analyseinvestors portfolios but have also reduced time spent bywealthmanagers on spreadsheets.

WealthTechalso offers deeperinsightsinto the portfolioswhichassistwealthmanagersinproviding a more comprehensive and customized offering toinvestorswhichmatch their expectations and risk appetite.

ArtificialIntelligence and Machine Learningtechnologies combined with big data analytics are disruptingwealthmanagementspaceina big way. Robo-advisory and quant-based product offerings are making strong headwayinto thisspace.

Ease of process and documentation

Inthe earlier days, documentation and KYC process used to be a bottleneck with processing time goinginto several days as wellinsome cases. Storage of documentsisalso challenging as this requires safe storagespaceand documents are prone to damage and/or being misplaced.

With the advancementintechnologies, we are now moving towards a fully digital and/or phy-gital mode of operations. Whileinvestinginsome products like mutual funds the processiscompletely digital for other products like PMS, AIF, structures, etc. the processes are moving towards phy-gital mode.

The use of Aadhar based digital signature and video KYC have made it possible to reduce the overall processing time significantly!

Summing up:

A shift towards holistic offerings rather than product-based offering

Theincreasing young populationiscominginto the workforce and thereby creating a shiftinfocus towards new-ageinvestors.

These new-ageinvestors are not onlytech-savvy and early adopters oftechnology but are also demanding moreinterms of offerings.

With easy access toinformation and growing awareness,investors are looking for holistic offerings rather than merely product-based offeringswhichencompass all theirwealthmanagementneeds.

Incumbentsinthewealthmanagementspaceshould, if they havent already,incorporatetechnology as anintegral part of their client offering to stay relevant.

Forincumbents, it may prove to be cheaper and faster to getinto the tie-ups, partnerships, or acquire new agetechnology companies to quickly come up the curve rather than buildingin-housetechnology solutions.

As the adage goes, the only constantinlifeischange;technologyisa change for thewealthmanagementdomain that needs to be embraced!

(Disclaimer: The views/suggestions/advice expressed hereinthis article are solely byinvestment experts. Zee Business suggests its readers to consult with theirinvestment advisers before making any financial decision.)

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From AI to Machine Learning, 4 ways in which technology is upscaling wealth management space - Zee Business