Lucknow Investment：Fintech redefining asset management
While the -advisor space has been growing in the United States and Europe, it is only beginning to make inroads into the Asian market. However, a number of automated advisory platforms have emerged recently in the region.Lucknow Investment
For example, out of the six major internet companies in Asia, five have already entered the wealth management market. TenCent[2], for instance, has proposed a wealth management service through its famous App: WeChat, where existing users are now able to place their money into a money market fund.
Based on our conversations with local fund management industry players, we learned that they are already conducting studies on the integration of some of these solutions including -advisors. They are expecting disruptions to their businesses from these new innovations.
Capitalising on Fintech will require a fundamental shift in the way asset managers operate. Here are some of the critical areas players will need to address to successfully adapt to the new marketplace.
Change in mindset
Given the disruptive nature of Fintech, it is imperative to change people’s mindsets. Asset managers will need to challenge existing assumptions and experiment with new business arrangements (through partnerships and collaborations). This includes embracing new technology in every part of their business, focusing on the customers’ needs and experience, customising their solutions to meet individual needs, and incorporating Fintech in the core of their strategy.
System execution
In executing any plans, the devil is always in the details. It can be the difference between a strikeout and a home runJaipur Stock. For example, in implementing -advisors, the application will need to incorporate the entire lifecycle of a unitised investment from the investor’s due diligence (front office) through to the investment decisions (middle office) and eventually to the operations (back office).
Collating personal data
A key success factor of a -advisor solution lies in the data it collates from the investorsAhmedabad Stock. This will allow it to make the right investment decisions[3]. To get your customers to share their personal data, you must first assure them that you can provide a delightful user experience, according to a SAP report. Delighted customers are five times more likely to disclose private data compared to unsatisfied consumers. The report added that when it comes to digital experience, consumers place high regard on security and services that can be used across multiple platforms.
Human touch in digital world
In the race towards automation, fund managers via -advisors can embed ‘human touch’ elements by incorporating more personalisation in the interaction with customers such as tailored financial news and reports, with the help of data analytics, and algorithms. Such personalisation and tailored solutions which were once only accessible to high net worth clients can now be made available to the masses. This, together with excellent customer service will provide a top notch investor experience.
The next generation of investors asset management firms are targeting are different from their older peers. They require simple and automated online investment platforms, where everything is accessible through their mobile devices from market insights, wealth reporting to social investment interactions.
This requires a paradigm shift in mindset, strategy, operations and customer engagement from the part of the asset managers. As it will take a while for these changes to fully take effect, asset management players should act nowHyderabad Investment. Don’t wait for something to be broken. Disrupt your own business – streamline your operations and look at new ways to engage your customers – before technology upends your business. You’ll see the results soon enough as an early adopter.
[1] Securities Commission Malaysia Annual Report 2015
[2] Chappuis Halder & Co, “Investment Advisory: The rise of the robots?”, 2015
Ahmedabad Wealth Management
