View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
  2. Industry news
November 4, 2021

Half of the wealthy support a hybrid AI approach

By Patrick Brusnahan

Around 50% of mass affluent and high net worth individuals (HNWIs) have stated they would be comfortable with a hybrid wealth management service supported by AI.

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

This is according to research from Avaloq that also found that almost 30% of wealth management clients are considering switching their financial advisers.

Surveying more than 1,400 mass affluent and HNW clients across ten countries, high fees and poor performance were the top reasons for switching.

Furthermore, 43% said they would switch because their needs were not being considered and 42% stated it was due to infrequent communication.

With regards to AI, 26% of respondents with a financial adviser would be happy for an AI-only service to make product recommendations based on behaviours or changes in their situation. 26% would also be find for an AI-only platform to answer portfolio questions.

In addition, between 47% and 56% of respondents with and without a financial adviser said they would prefer a hybrid AI approach when it comes to the management of their personal details.

John Wilson, managing director UK at Avaloq, said: “AI is already playing a growing role in the delivery of personalised and more efficient wealth management services, driving revenue growth and client engagement levels higher for financial institutions. We believe that a hybrid approach is most likely to become the future standard model. The benefits include greater operational efficiency and a seamless, real-time client experience.

“The challenge for financial institutions is that, in this highly digitalised time, client loyalty is under increasing pressure. Given the increasingly competitive market environment, wealth managers need to deliver a highly personalised client experience to remain relevant. The answer is a hybrid model that blends automation and digital availability with face-to-face advisory. AI will not replace front office staff such as financial advisors, but it will help them to provide a richer service while also meeting key business demands, such as scalability and efficiency.”

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Private Banker International