The stakes are particularly high in wealth management. As the Altrata World Ultra Wealth Report 2024 suggests, the global UHNWI population is expanding at an annual rate of 9%. For wealth managers, keeping pace with this shift requires adopting cutting-edge technologies to meet the rising expectations of tech-savvy clients.
AI and Blockchain: The Foundations of WealthTech
Artificial intelligence (AI) and blockchain technology are at the heart of this transformation. AI enables wealth managers to sift through vast datasets to offer personalized insights and automate routine tasks like compliance checks, freeing advisors to focus on strategic planning.
A survey by Accenture found that nine out of ten financial advisors believe AI can help grow their books of business by more than 20% through improved client engagement and operational efficiency. Additionally, PwC’s research forecasts that assets managed by AI-enabled digital platforms, such as robo-advisors, are expected to nearly double, reaching almost $6 trillion US dollars by 2027.
Blockchain, meanwhile, enhances security and transparency in wealth management. By enabling real-time transaction verification and smart contracts, it ensures faster, more reliable services. These tools are no longer optional but essential in a sector where 66% of clients now demand a digital-first approach to managing their wealth according to F2 Strategy’s 2024 WealthTech Outlook.
Collaboration as the New Imperative
This year’s focus at the WEF on “Collaboration in the Intelligent Age” highlights the increasing demand for integrated solutions in wealth management. Platforms like Altoo exemplify this trend, bridging the gap between UHNWIs, family offices, and financial advisors.
“Altoo’s platform is a game changer. Our clients describe it as a world-class asset management solution with exceptional security features.” says Ian Keates, CEO of Altoo.
By providing a centralized dashboard that aggregates data across global institutions, the Wealth Platform offers clients complete visibility into their wealth, empowering better decision-making.
This ethos of collaboration is also evident in Altoo’s partnership with ALBAPAZ, a multi-family office. “Altoo allows us to ensure optimal wealth allocation, conduct regular valuations, and deliver detailed reporting,” says Dominik Unger, ALBAPAZ co-founder. The integration of technology and human expertise enables his clients to navigate complex wealth structures with agility and confidence.
Challenges for Traditional Firms
While innovators thrive, traditional wealth management firms face an uphill battle. Many still rely on outdated systems that are slow, error-prone, and incapable of meeting modern expectations. The Capgemini World Wealth Report shows that over 60% of UHNWIs prefer a hybrid model blending digital tools with human expertise – a model that requires significant investment in technology.
The consequences of failing to modernize are stark. Fintech disruptors and robo-advisors are rapidly eroding the market share of legacy firms. Meanwhile, clients increasingly demand seamless, mobile-first experiences and greater transparency – services that traditional approaches struggle to provide.
What UHNWIs Should Look for in WealthTech Providers
As the wealth management landscape evolves, choosing the right technology partner is critical for UHNWIs. Here is what to prioritize:
01 Security and Privacy: Ensure the platform uses advanced encryption and complies with international data regulations.
02 Usability: Opt for solutions with intuitive interfaces that simplify complex financial data.
03 Flexibility: Look for platforms that can be tailored to manage diverse, multi-jurisdictional portfolios.
04 Support: Robust client service and onboarding expertise are essential for smooth integration.
The Future: Hyper-Personalization and Sustainability
The future of wealth management lies in hyper-personalization, driven by AI and real-time analytics. McKinsey predicts that 80% of firms will adopt integrated platforms to meet client demands for bespoke solutions. Simultaneously, sustainability is becoming a key consideration, with ESG (environmental, social, governance) factors increasingly influencing investment decisions.
“Technology is not just a tool – it is a cornerstone of modern wealth management strategy.
By embracing advanced platforms and collaborative approaches, wealth managers can not only keep pace but lead the industry into the Intelligent Age, “ underlines Ian Keates.
The Time to Act is Now
The clock is ticking on the future of wealth management. As Klaus Schwab emphasizes, “The future will be shaped by those who harness the power of technology and human collaboration.”Wealth managers must act decisively, embracing innovation to serve the growing ranks of UHNWIs. Platforms like Altoo, with their emphasis on security, usability, and collaboration, are setting the standard for this new era. The Intelligent Age is here, and those who adapt will define the future of wealth management.
To explore how business leaders can navigate collaboration in an age of converging technologies and hyper-intelligence, visit our dedicated WEF thematic page.
Listen to the podcast with Ian Keates, CEO of Altoo, to hear insights on the latest wealth management trends.
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