The digitisation and automation of Wealth Management services allow you to reduce costs and increase efficiency; similarly, the use of artificial intelligence tools such as Machine Learning allows you to serve more customers in a more personalised way, in full compliance with regulations.
However, something is still missing: the creation of the real value, that distinguishes those who ride the wave of innovation and evolve from those who embrace automation whilst, compromising customer service.
The particular variant of unpredictability
A Digital Wealth Management service completely managed by machines represents a marginal phenomenon. Robo-advisors, with the aim to disintermediate consultancy, offer excellent user experience, great automation, very low costs. However, they remain a niche, certainly interesting to cover, but that doesn’t make the difference.
Unlike other markets, Wealth Management is unpredictable: when we buy a financial product, unlike any other consumer goods, we don’t know its long-term performance and quality.
The human factor that makes the difference in digitalisation
This is why an Amazon of Wealth Management cannot exist, supported essentially by algorithms, continuously optimised, with the aim to offer always the best price. There is no guarantee this will continue to offer better value over time.
To create authentic value in Digital Wealth Management, excluding digitalisation (imperative) and artificial intelligence (inevitable), the difference must be made through the human factor.
The technology that will win today and tomorrow is the one that empowers the advisor with the right tools to manage the relationship with the customer, capable of overcoming the uncertainties and unpredictability of the market.
Not limited to algorithmic indications but also experience and professionalism. Those who create a relationship of trust, who distinguish one institution from all the others. The interaction between people that continues to create authentic value.