This was the subject of the fifth workshop held by Objectway and Compeer regarding the report “Wealth Management Firm of 2025”.

As we move into a digital era it is expected by most that we shall see a continued rise in the expenditure on technology in wealth management.

When discussing their current infrastructures, some firms suggested that they have a hybrid model, or “best of both” approach with a mixture of onsite servers and using an external cloud. This is often the chosen approach as it is the most cost-effective set-up. It is also common to use an external data center.

BRINGING TECHNOLOGY IN TO THE FRONT OFFICE

Technology will become a front office function with tech-specialists accessible to clients in order to answer queries relating to the latest digital tools being made available to clients.

Security is absolutely key, especially where in some cases firms are laptop only businesses and so work can be carried out from any location.

USE TO CLOUD

In terms of hosting, the firms are very open to using the Public Cloud, provided they have the capability to make it 100% secure and all data is encrypted.

However, data harvesting and Big Data are very low on the agenda of firms, as firms struggle to see the payback from investing in these services.

EMPLOYING ARTIFICIAL INTELLIGENCE

If the software is developed and is shown to work, Artificial Intelligence has a place in wealth management. However, it will be used as a support function (possibly through using machine learning to improve back office processes or by assisting the front office with investment selections) and should not be thought of as a replacement for humans within the business.

Great value is placed on the Investment and Relationship Managers and if you try and replace them with machines you run the risk of negatively impacting client service and potential client outflows if they were to follow the individual in which they are developed a strong relationship with.

AI could also help in the back office by, for example, proactively correcting errors in pricing.

Read the full report and discover all the actions suggested by Objectway and Compeer.