The past few years have been a race for relevance for wealth managers, with the financial services sector undergoing massive changes. Customer expectations, regulatory developments and the increasing impact of technologies are driving a paradigm shift in the market. Therefore wealth management organizations are assessing their growth strategies and identifying ways to capitalize through new opportunities such as deployment of Artificial Intelligent (AI) led solutions.

There has also been a constant transformation in investment patterns, customer awareness and subsequently customer expectations from wealth managers in the Indian market. For instance, a lot of Indian investors are now relooking at their investment priorities, with many of them willing to consider beyond traditional financial asset classes such as Fixed Deposits, gold and assets —to more sophisticated instruments of investment. This trend will likely lead to more innovation, increasing risk appetite and overall growth in the ecosystem.

Amidst these evolving trends, wealth managers, across the globe, not India alone, are challenged with tons of data generated, that they need to decipher to keep abreast with market and customer requirements – i.e. news from media, trading insights, regulatory trends, company developments and so on. This has led to wealth advisors proactively

adopting AI to support them in deriving insights from information.adopting

To add, multiple financial technology companies with a completely non-traditional approach to wealth management, are disrupting the dynamics of this market. Players such as Shubh Loans, MoneyTap and Fino PayTech are just a few examples. Along with these tech-driven players and start-ups, are organizations and banks who want to be more innovative and agile in their approach and services to customers. In many ways, it’s probably the most fascinating time to be in the wealth management space.

AI: The ultimate tool to deliver financial wellness

If early predictions are anything to go by, 80 percent of ‘heritage financial services firms’ will go out of business, become commoditized or exist only formally but not competing effectively by 2030 (Gartner). The agency further forecasts that these firms will struggle for relevance as global digital platforms, fintech companies and other non-traditional players gain greater market share, using technology to change the economics and business models of the industry.

Adoption of digital technologies will thus become the most effective tool for incumbents and new players to build and sustain a competitive edge. Yet, wealth management is considered to be one of the least ‘tech-literate’ sectors of financial services (PwC). But, that is going to change.

Read the rest of Pramod Singh’s article at Moneycontol.com