There is going to be a big shift by 2021 such that the convergence of technological, economic, and demographic trends will transform the wealth industry and unlock immense global wealth across a diverse universe of investors.
This is according to a study by Roubini ThoughtLab, an independent thought leadership consultancy, in a white paper produced in conjunction with Bank of Montreal, Broadridge, CFA Institute, Cisco, eToro, Schroders, SEI, and State Street. It is titled Wealth and Asset Management 2021: Preparing for Transformative Change.
“Indeed, our research shows that a convergence of technological, economic, demographic and consumer trends will turn the wealth profession on its head by 2021, reshaping customer expectations, disrupting business models, and altering advisor roles. These new realities will require investment providers to drive wide-ranging digital transformation or face extinction at the hands of competitors both old and new,” the report says.
It notes that the more influential technologies to watch are the fast-growing, smart technologies that can differentiate a customer’s experience and catapult some firms ahead of others in the digital race. These technologies include virtual reality (set to grow by 130% in the next five years), artificial intelligence (123%), web analytics and sentiment analysis (77%), telepresence and web collaboration tools (70%), and blockchain (43%).
eToro’s Founder and CEO, Yoni Assia, described blockchain as a leading-edge technology while Alex Tapscott, co-author of the book Blockchain Revolutionand Founder and CEO of Northwest Passage Ventures, sees blockchain as a huge game-changer for the wealth profession.
He stated in the report:
We’re moving from the Internet of Information to an Internet of Value where a lot of what financial services firms normally do – namely acting as a trusted intermediary between parties who may not know each other – can be significantly automated and improved. That has a direct impact on the world of investment services.