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Wealth management: what are the latest technologies?

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ai et gestion de patrimoine

New technologies are continuously transforming wealth management sector, offering new opportunities to better serve private clientele and meet its wealth management requirements. The financial sector increasingly relies on the latest technological innovations. Here’s how artificial intelligence, blockchain and other technologies have managed to evolve the customer experience in remarkable ways with affluent customers.

The rise of artificial intelligence:

Artificial intelligence is revolutionizing wealth management by enabling unprecedented personalization. Thanks to the analysis of large quantities of data, AI can propose tailor-made investment strategies, adapted to each customer’s objectives and risk tolerance. What’s more, AI facilitates the automation of much more time-consuming administrative tasks, allowing managers to focus on their core business.

Optimization: the impact of automation and AI

Process automation, thanks to AI and other technologies, enables wealth management operations to be more efficient. By reducing manual tasks, the risk of human error is reduced, while operating costs are optimized. This allows managers to focus on providing value-added services to their wealthy clients. In an ever-changing competitive environment, these new technologies are essential to stand out from the crowd.

Adoption of fintech platforms

The evolution of fintech platforms has revolutionized the way wealth is managed. These platforms offer multiple tools, from investment analysis to blockchain-based asset tracking. For wealth managers catering to UHNWIs and HNWIs, keeping abreast of the latest fintech developments isn’t just a recommendation – it’s a necessity.

But it’s not just about being comfortable with technology, it’s also about leveraging these tools to develop more effective and informed financial strategies. According to the World Wealth Report, over 60% of financial advisors do not have access to the data and technology that would give them a competitive edge in customer engagement and investment performance.

Blockchain for more transparency

Blockchain technology, which first emerged with cryptocurrencies, is gaining ground in asset management. By offering a decentralized, secure and transparent system, blockchain enables real-time tracking of financial transactions. Several financial institutions are developing blockchain-based platforms dedicated to investment funds for wealthy clients.

Robo-advisors and algorithmic decisions

Enter the world of robo-advisors, who bear witness to how technology is reshaping the field of wealth management. These digital platforms use mathematical algorithms to offer investment advice with minimal human intervention.

A PwC Global Wealth and Asset Management Survey 2023 reveals that assets managed by robo-advisors worldwide exceeded $2.5 trillion in 2022.

The digital revolution is forcing asset managers to adapt and integrate these technologies into their business. It’s important to understand that robo-advisors, while sophisticated, may lack the human intuition and bespoke tailoring required for complex financial portfolios.

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