Even private wealth management, often considered banking's most immune to disruption, was no exception to the recent wave of digitalization, said finews.asia chief editor, Richard Otsuki, in an interview with Money FM 89.3.
Private wealth management has traditionally been viewed as a weaker candidate for the poster child of digital transformation in banking. Large sums of money, complex investment products and sensitive private issues – such as family inheritance or the finances of a mistress – are oft-cited reasons to retain conservative methods of relationship management.
«To be very honest, until recently, digitalization has been rather gradual within private banking,» said Richard Otsuki, chief editor of finews.asia in an interview with Money FM 89.3 senior producer and presenter, Rachel Kelly.
«It's probably [moved] in line with sort of the broader trends of digitalization in the broader commercial world,» Otsuki added, citing non-banking examples of digital adoption such as e-commerce or gaming industry.
Not the Pandemic Alone
The pandemic alone perhaps would not be strong enough impetus to fuel wholesale adoption of digital activities. But when coupled with increased market volatility and rising geopolitical risks, most notably from Beijing’s national security law and recent sanctions issued by Washington, there was real demand in the region to engage under new post-pandemic methods.
«So in light of difficulties with traveling and with all the international wealth that resides in Asia, there’s likely going to be more […] concerns being voiced to bankers about these issues,» Otsuki added, highlighting digital communications from private banking clients.
Digital Infrastructure
In order to convert various forms of physical engagement and manual activities, private banks have invested in a plethora of areas focused not only on functions directly related to finance. Interactive virtual conferences, secure communication platforms for instant messaging and file transfers, and effective remote workplaces are amongst the many non-financial tech innovations that have contributed to greater digital adoption.
«You can see the benefits of technology and the positive effects of scaling that it can have in terms of the numbers and hopefully even the quality of activities,» Otsuki said.
Listen to the full interview on Money FM 89.3:
