An article titled ‘The Digital Native Effect’, published in the CampdenFO recently landed on my table.
In the article, Eva Lindholm, the head of ultra-high net worth Europe at UBS discusses how the “wealth management sector is facing increasing competition from technology firms”.
As we all know, technology is becoming a major driving force both in the world of work and in our personal lives. No matter how much we try to resist it, we know we could not function without it.
With an increasing amount of younger tech savvy people reaching ‘millionaire’ status, wealth managers need to find a way to be able to engage with this demographic of clientele.
As mentioned in the article, having access to the internet has resulted in people second-guessing professional opinions, a challenge wealth managers are also facing from their clientele.
Their opinions no longer have the same validity that they would have 10 years ago when the information on the internet wasn’t as diverse.
As stated in the article, “When my parents’ generation went to the doctor, whatever the doctor said is what you did. Not, this generation goes to the doctors and will have researched their illness on the web and will come to the meeting with views and questions”. “The professional cadre is not treated as an oracle anymore”.
With ever increasing competition from the likes of Google & Facebook, the wealth industry needs to find a means of secure, convenient and auditable engagement with the younger generation of investors, otherwise they risk falling behind the large tech companies which are slowly creeping into the world of financial services.