Winds of change: fintech in the wealth management industry
30 January 2019
Stuart Cummins, Chief Executive, Nedbank Private Wealth
The winds of change are blowing through the traditional wealth management industry, with private banks currently in an ideal position to explore the digital opportunities the financial services industry as a whole is powerfully positioned to exploit. However, it is crucial that companies improve their own digital technology and are fully prepared to cater to the digital needs of the next generation of investors.
Many wealth managers may not yet place fintech at the heart of their strategy, but they are certainly beginning to experience the game-changing impact new technology start-ups are having.
“FinTech is all about innovation, creativity and transformation, and it will undoubtedly impact and shape the way financial institutions around the world operate,” explains Nedbank Private Wealth chief executive Stuart Cummins. “That innovation should be embraced and used to create an advantage.”
Fintech has had a staggering effect on the market in the past year alone, with financial institutions and fintech companies moving closer together and redrawing the lines that separate them.
With greater web and mobile technology, engagement both online and via mobile is critical and complements the continued need to provide a personalised service. Wealth managers who devote resources to improving the client experience and optimise their internal performance can only be well-placed to profit from the industry’s continued growth.
Security matters continue to be a trend as new technologies break down barriers between clients and their data. Yet, Cummins believes, partnering with fintech firms with the same high standards can provide peace of mind. “The confidentiality and security of clients’ data is key and, cognisant of that, we will not compromise on security,” he explains. “With an increase in fraud attempts, cyber-crime and the like causing uncertainty, there is always a high bar when we decide who we will partner with.”
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