Technology's Impact on Wealth Management Shifts and Adapts
In the dynamic world of finance, wealth management is undergoing a significant transformation. This shift, driven by digitalization and the rise of neobrokers, is a topic of discussion on the Fintech podcast, hosted by Ralf Heim and André M. Bajorat.
Heim, the author of "Heads of the Digital Finance World" and a globally recognised speaker, highlights several key trends and challenges in wealth management. Digital advisory and AI integration are transforming private banking, raising client expectations for personalized, tech-enabled services. Neobrokers introduce new competitive pressures with low-cost, user-friendly platforms, challenging traditional wealth managers to innovate and adapt.
Digitalization demands higher transparency, automation, and the reduction of repetitive tasks, enabling financial managers to focus on strategic wealth planning. There is a growing expectation for seamless digital workflows, integrated financial management solutions, and real-time access to portfolio data.
Embracing technology like AI and digital platforms is essential, but it brings challenges related to client trust, compliance, and differentiation in a crowded digital marketplace. Therefore, the wealth management sector is in a phase of rapid change where balancing innovation with personalized human advice is crucial.
Meanwhile, Fincite, a software solution for private banking advisors, is pivoting towards digitizing the entire advisory process. Ralf Heim, the co-founder and CEO of Fincite, believes that the new alpha is goal achievement, not benchmark comparisons. Customers are more interested in achieving personal goals like preserving, securing, or planning for retirement wealth.
Fincite started as a solution to intelligently analyse Open Banking data and automate advice. André M. Bajorat, a Managing Director at a German asset manager since mid-2022 and part of the Deutsche Bank group, has been a business angel for figo since 2012 and led the company from 2014 to September 2019. He transformed figo from a B2C app to a BaFin-regulated Banking as a Service provider.
Bajorat is a member of the Digital Finance Forum of the Federal Ministry of Finance and an active member of Bitkom. He is also a co-initiator and organizer of several industry events, including the "FinTech of the Year" award and the event series Bankathon, Payment Exchange, Banking Exchange, and Transactions.io.
Technology enables better service to more customers and staying relevant, particularly in private banking. Bajorat's content focuses on banking, payment, FinTech, API banking, digital assets, and crypto. He is the founder and publisher of the industry portal ourwebsite.com.
In the new podcast, Heim and Bajorat discuss the future of wealth management, exploring how technology can be leveraged to meet new client needs while maintaining a personal touch. As the industry evolves, it's clear that the focus is shifting from regulatory requirements to added value for the end customer.
Technology is transforming private banking by integrating AI and digital advisory, raising client expectations for personalized, tech-enabled services (Bank, finance, technology). Embracing technology is essential to meet new client needs while maintaining a personal touch, as the industry evolves and the focus shifts from regulatory requirements to added value for the end customer (Bank, finance, technology).
