However, 45 percent of investors say fintech solutions are valuable when used with traditional investment services. Most wealth firms say they are developing new digital capabilities, such as account access anytime, anywhere on any device (55 percent), technology-enabled planning tools (45 percent) and improved performance analytics (41 percent).
The research indicates that wealth companies will transform their strategies, products and business models to become fully integrated, digitally driven businesses by 2021. Firms currently in the advanced stages of providing digital transformation report that last year they increased assets under management by 7.2 percent, profitability 6.8 percent and productivity by 9.4 percent.
“Crucially, the research reveals five key pathways to success used by today’s digital leaders,” the report says. “They are investing adequately in new technologies (41 percent), making the customer central (37 percent), nurturing an innovation culture (33 percent), developing an effective transformation process (32 percent), and bringing the right talent on board (31 percent).
“Even in normal times, wealth executives face a complex set of global economic, market and regulatory challenges. But, these are hardly normal times,” says Celi. “Many investment providers in our survey do not appreciate just how fast these changes will happen, and the profound impact they will have on their business.”