EXECUTIVE SUMMARY 2
1.1. Adoption of technology in wealth magement will accelerate 2
1.2. Key findings 2
1.3. Critical success factors 2

2. WEALTH MAGERS AND TECHNOLOGY: GENERAL TRENDS 9
2.1.1. Private banking has traditiolly competed upon the basis of relationships and alpha 9
2.1.2. Private banks have recently awoken to the need for digital innovation in their service delivery 9
2.1.3. Robo-advisors have lit a fire under the industry in regards to the utility of digital solutions 9
2.2. Wealth magers are investing in front- and back-office tech 10
2.2.1. Client-facing solutions have been seen as a higher priority, but back-office is still a focus 10
2.3. Understanding technology is essential in order to benefit from it 11
2.3.1. Other branches of fincial services will continue to lead in technology 11

3. TECHNOLOGY IN WEALTH MAGEMENT: DRIVERS FOR ADOPTION 12
3.1. Drivers for technology investment have come from many different quarters 12
3.2. Lower fees and simplicity attract investors to digital platforms 13
3.2.1. Wealth magers once again need to adapt to a step-change in fee tolerance 13
3.2.2. Price-sensitivity fuels interest in low-cost, digital-only investment magers 13
3.2.3. User-friendly platforms are welcome among more hands-on investors 15
3.3. Intergeneratiol change is fueling the need for a shift in how wealth magement services are provided 17
3.3.1. Wealth magers must incorporate digital services ahead of millennials coming into wealth 17
3.3.2. The current aging HNW demographic remain loyal to their advisors 17
3.3.3. As wealth is passed on, wealth magers’ client demographics will change 17
3.3.4. Wealth magers should not underestimate the utility of digital services to older clients 18
3.4. Large wealth magement organizations struggle with costs 18
3.4.1. Expenses have been growing faster than revenues 18
3.4.2. Staff reductions require better advisor effectiveness 19
3.5. Regulatory requirements have weighed on the efficiency of many firms 20
3.5.1. Mounting compliance requirements have resulted in higher costs for wealth magers 20
3.5.2. The fiduciary rule in the US will encourage firms to invest in technology 21

4. THE NEXT STEP FOR ROBO-ADVICE: HYBRID OFFERINGS 22
4.1. Incumbent wealth magers feel the pressure from robo-advisors 22
4.1.1. Automated investment platforms will try to win private banks’ audience 22
4.1.2. Robo-advice platforms can complement wealth magers’ services 23
4.1.3. Digital players are yet to find their ultimate place in the market 24
4.2. Robo-advisors only really launched into the market following the fincial crisis 24
4.2.1. Challenger brands are not able to compete with incumbents on reputation 24
4.3. Traditiol wealth magers are venturing into robo-advice 25
4.3.1. Inclusion of the human element is key to bringing in significant AUM 25
4.3.2. Security and trust remain essential in investment magement, making brand a key consideration 26
4.3.3. The roles of humans and technology are not fixed 27
4.3.4. Client segmentation and tailored targeting strategies are essential 27
4.3.5. There is HNW appetite for digital solutions 28
4.4. Hybrid human-digital offerings are the future 29
4.4.1. The hybrid proposition must not undermine a provider’s image, values, or core business 30
4.4.2. The right combition of human and digital elements will resote with a wide audience 31

5. DIGITAL EFFICIENCY TOOLS 32
5.1. The industry invests in technology that allows savings 32
5.1.1. Wealth magers are investing more in tools supporting front- than back-office 32
5.1.2. Drivers of investment in efficiency tools have mainly been cost-related 32
5.2. Innovative communication platforms save time on travel and meetings, but will not replace human contact 33
5.2.1. Improving communication flow between clients and advisors has been the focus of North American wealth magers 33
5.2.2. Portfolio magement software will be most beneficial in markets with low discretiory mandates penetration 35
5.2.3. Digital workflow tools support the administrative duties of relationship magers 37
5.3. Automating compliance work will trigger efficiencies 38
5.4. Big data alytics can help tailor products, but on the top level only 41
5.4.1. Alysis of investors’ history of trades provides information about their attitudes 41
5.4.2. Less than a third of wealth magers use big data 41
5.5. Blockchain remains untouched territory in wealth magement 42

6. WEALTH MAGERS’ COLLABORATION WITH IT VENDORS 45
6.1. The wealth magement industry presents an opportunity for IT solution providers 45
6.1.1. Emerging markets have been early adopters of innovative solutions 45
6.1.2. Wealth magers look for support in client acquisition and gaining efficiencies 46
6.1.3. The opportunity for IT vendors lies in developed economies with big established firms struggling with outdated systems 47
6.2. Fintech startups are seeking partnerships with bigger brands 48
6.2.1. In an industry that requires scale, start-ups have been eager to partner 48
6.2.2. Fintechs will struggle to attract wealth partners in North America 49
6.3. Established IT vendors have an advantage over fintechs 50
6.3.1. Upgrading is still a fraught endeavor for wealth magers, and they appreciate the experience and capacity of established suppliers 50
6.3.2. IT vendors should provide not only pure IT services, but also advice 51

7. APPENDIX 52
7.1. Abbreviations and acronyms 52
7.2. Supplementary data 52
7.3. Definitions 66
7.3.1. Automated investment platform 66
7.3.2. CAGR 66
7.3.3. Developed (mature) economies 66
7.3.4. Emerging (developing) economies 66
7.3.5. High net worth (HNW) 66
7.3.6. Robo-advisor 66
7.3.7. Standalone automated investment platform (robo-advisor) 66
7.4. Methodology 67
7.4.1. 2017 Global Wealth Magers Survey 67
7.4.2. 2016 Global Wealth Magers Survey 67
7.4.3. 2015 Global Wealth Magers Survey 67
7.4.4. Mass Affluent Investors Survey 67
7.4.5. Level of agreement calculation 68
7.4.6. Exchange rates 68
7.5. Bibliography 68
7.6. Further reading 70