Digital Disruption Gains Ground
Automated advisers are broadening their appeal in wealth management, New Zealand is the latest jurisdiction in the region to embrace the disruption.
New Zealand is calling for applications from providers seeking to offer personalized financial advice to customers through digital tools and platforms, so-called robo advice, according to a statement from the The Financial Markets Authority.
Robo adviser platforms are forecast to hit $25 billion in revenue in four years. Automated advisers will make investments more compelling to the ultra-rich as well as those with lower income, the study compiled by Juniper Research said.
This will drive total assets under management by robots upwards twelvefold, to $4.1 trillion in 2022, from an estimated $330 billion in 2017, the study claims.
Growing Fast
Major wealth managers such as Credit Suisse are building up their own robo offering. The Swiss firm recently ramped up its fintech expertise in Asia by taking a 10 percent stake in Canopy, a Singaporean data aggregation platform for the wealthy.
UBS offers British retail clients robo advisor «Smartwealth» - a departure for a bank which primarily focuses on wealthy clientele. Last year, OCBC Bank became the first bank in Southeast Asia to pilot a robo advisory service. The entry threshold for investment was set low, starting at S$3,000.
