Global analytics firm Cerulli Associates says Asset Managers need to start segmenting investors by digitalisation awareness rather than by age. Asian investors in particular however are embracing the use of technology for investment advice across all age groups.
Cerulli claims that too many asset managers view digital intermediation as the preserve of young investors, when, in fact, a significant number of more mature higher net worth individuals happily use digital services to access their portfolios remotely, seek guidance, and execute transactions.
«Engaging with clients digitally can deepen relationships but asset managers are restricting the scope of this opportunity by focusing on a particular generational cohort,» said Barbara Wall, Managing Director, Europe at Cerulli.
Asian Findings
Research by Cerulli reveals that enthusiasm for digital interaction is particularly strong in Asia. The firm has found that preferences for digital interaction with financial advisors among 18 to 35-year-old Asians is more than two-and-a-half times higher than in Europe and almost six times higher than in the United States.
The firm's research into Asian investors' sources of investment information confirms that interest in digital technology in Asia is not limited to younger clients. When asked how they would like their financial advisors to keep in touch, 76 percent of 48-67 year olds expressed a preference for email, which compares favorably to 87 percent of 18-35 year olds.
Cerulli notes that big data, which enables managers to gather and process information about specific markets, is not being used as effectively by the asset management industry as it is within the world of retail banking.
Mutual fund firms in India for example are increasingly optimistic about the industry being able to harness technology to capture a greater share of households. However, the analytics firm notes that fund houses will still need the support of independent financial advisors to increase their reach in remote cities.
