BigTechs Cast Long Shadow in Wealth Management
Firms have reason to be wary of BigTechs as HNWIs are open to having their wealth management needs serviced by these firms. More than half (56.2%) of HNWIs globally say they would be open to working with them. This is especially true for younger and emerging-market HNWIs.
HNWIs have high expectations of increased efficiency, transparency, online excellence, and innovation with BigTechs, but express some trepidation about privacy, security, and the lack of human involvement.
Wealth management firms are aware of the BigTech threat, though their perceptions vary significantly across four categories: Believers, Open-Minded, Skeptics, or Resistors. A majority of firms (78.3%) view the entry of BigTech into financial services as either a certainty or strong possibility.
Partnering with BigTechs will offer wealth management firms the opportunity to win over HNWIs with truly innovative offerings built on the latest technologies. With these opportunities, however, will come widespread disruption and the risk that initial partnership could give way to outright competition in the future.
Wealth Management Firms’ Perception of BigTech, Q2 2017
Note: This is based on 31 responses
Source: Capgemini Financial Services Analysis, 2017; Executive Interviews, 2017; World Wealth Report 2017, Capgemini