Visa Direct Is The Engine Behind Zelle and Venmo
#Visa and Mastercard offer real-time payments using debit card rails? Is this a solution staring us in the face?
Financial Technology
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Banks Lag Behind Tech Giants in Fintech Patent Race
Many large #banks describe themselves as equal parts #technology firms as they are financial services companies, but then shouldn’t they have relevant patents backing that notion? Well, they don’t. In fact, a new report showed that technology company IBM has five times more #fintech patents than the world’s 15 largest banks combined. The report, released […]
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Banks Leave Blockchain Behind and Take to the Cloud
#Blockchain has yet to realize its full potential, and right now, it seems like financial institutions and #technology providers aren’t rushing to push it out of its nascent, proof-of-concept stage. When it comes to blockchain, the technology is “always interesting,” Anil Beniwal, director of engineering for online investment company Betterment, told Bank Innovation — but not […]
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Aegon Leaves Legacy Behind With Ohpen’s Cloud Finserv Platform
Paradigm shift — #Aegon is using Ohpen to create an integrated #platform where customers can see and work with multiple accounts through a single #cloud-based platform running on AWS.
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Behind The Scenes Of Real-Time Payments In the U.S.
Momentum is building around real-time #payments in the US as #banks, corporations and #fintech companies begin thinking of how this could change the way they do business or the services banks could offer.
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What’s Behind the Swarm of Standalone Card-Control Apps?
Look in the app store for your bank, and you may find not one, but two or three or even four #apps. Some are for business users or treasury executives, but others are for consumer-facing features, like card controls – the ability to turn your debit card on or off, for example. Why aren’t these part […]
Bank Innovation -
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Behind The Scenes Of Real-Time Payments In the U.S.
Momentum is building around real-time #payments in the US as #banks, corporations and #fintech companies begin thinking of how this could change the way they do business or the services banks could offer.
Tom Groenfeldt – Financial Technology -
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Mastermind Behind Fyre Festival Also Failed a Payments Company
Unless you have blocked all social media channels at once for the past few days, you have heard of #Fyre #Festival: a luxury, millennial-focused music festival (tickets sold for up to $ 12,000) that quickly turned chaotic. The now-cancelled festival organizers are currently facing a $ 100 million class-action lawsuit. Among those founders is Billy McFarland, a […]
Bank Innovation -
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Aegon Leaves Legacy Behind With Ohpen’s Cloud Finserv Platform
Paradigm shift — #Aegon is using Ohpen to create an integrated #platform where customers can see and work with multiple accounts through a single #cloud-based platform running on AWS.
Tom Groenfeldt – Financial Technology -
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Wealth Managers ‘Dangerously Behind’ in Digital Tech Adoption
The rise of #technology has altered how we live and do business, impacting all parts of the economy, including finance and #wealth management. But as #digital disruption advances, wealth #managers are found to be “dangerously #behind” the curve in #adoption, overestimating their capabilities and underestimating the impact of emerging technologies such as #robo-advisors, according to PricewaterhouseCooper (PwC).
In a new report, the consultancy firm explores expectations among high net worth individuals (HNWIs) for wealth management and their use of digital technology, and assesses attitudes to, and provision of, digital technology within the wealth management industry.
The findings of the report, based on survey responses from 1,000 HNWIs and interviews with 100 client-facing relationship managers who work in wealth management firms, suggest that there is a big gap between HNWIs’ expectations and wealth managers&8217; perception of digital technologies.
The research found that wealth management is one of the least #tech-literate sectors of financial services; a trend that comes into conflict with HNWIs&8217; growing enthusiasm in adopting new technologies.
85% of HNWIs are using three or more digital services in their day-to-day lives, and yet, only 25% of wealth managers are offering digital channels beyond email.
Over half of HNWIs surveyed believe it is important for their financial advisor or wealth manager to have a strong digital offering – a proportion that rises to almost two-thirds among HNWIs under 45.
47% of HNWIs who do not currently use robo-advice services would consider using them in the future. Meanwhile, two-thirds of wealth relationship managers said they do not consider robo-advisors a threat to their business and repeatedly insist their clients do not want digital functionality.
Only 39% of clients would recommend their current wealth manager, highlighting the growing dissatisfaction. This figure decreases to 23% for US$ 10m+ clients. This weak affiliation to traditionally wealth managers is creating a sector vulnerable to #fintech incomers, the report says.
&8220;This conflict within wealth management firms, combined with a client-base that feels only weak affiliation to its chosen providers, is creating a sector that is now acutely vulnerable, to digital innovation from fintech incomers, including robo-advice services,&8221; said Barry Benjamin, global asset and wealth management leader at PwC.
&8220;Ignoring this state of affairs is not an option. If firms do not respond now, they simply will not survive in the medium to long term.&8221;
To survive, PwC advises wealth management firms to accelerate efforts to adopt a comprehensive digital infrastructure that integrates every aspect of their activities and corporate culture, harness the potential of digital, and be willing to partner strategically with fintech innovators.
PwC&8217;s ‘Sink or Swim: Why wealth management can&8217;t afford to miss the digital wave&8217; report echoes another paper released two weeks ago by Capgemini that advises wealth management firms to explore partnerships with fintech ventures to ensure their long-term success.
Capgemini, which surveyed 5,200 HNWIs and 800 wealth managers, found that clients&8217; demand for automated advisory services, or robo-advisors, has risen to nearly 20% points over the last year, from 49% in 2015 to 67% in 2016. The report also found that the wealth management sector has been falling to exploit their digital capabilities including social media and mobile tools.
However, Capgemini said that wealth management firms were beginning to wake up to the digital gap issue, noting that several of them have been exploring accelerator programs to attract startups, partnering, investing in or acquiring robo-advisory companies.
Featured image: Robot by Ociacia, via Shutterstock.com.
The post Wealth Managers &8216;Dangerously Behind&8217; in Digital Tech Adoption appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
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