Wealth managers in the Middle East and North Africa (Mena) region are expecting strong growth in the number of robo-advisers and digital-only solutions, research by behavioural finance experts Oxford Risk has found.
Oxford Risk surveyed 100 independent financial advisers and wealth managers in Mena and found 34% expect the number of digital-only solutions to increase dramatically by 2025.
Another 45% expect a slight increase in the number of robo-advisers and digital-only solutions, while 21% expect no change.
Some 68% said the pandemic has accelerated the technology revolution in the Mena wealth management sector. But 12% disagree that the pandemic has had an effect.
Tech benefits
Greg Davies, head of behavioural finance at Oxford Risk, said: “The increased use of technology is transforming businesses around the world and is clearly having a major impact in the Mena region.
“The rise of digital-only solutions is to be expected as the technology revolution speeds up in the Mena wealth management sector. There are major benefits for wealth managers and clients from increasing their use of technology and algorithms.
“That will help deliver more consistent support to clients and avoid issues over assessments of risk tolerance and asset allocation. Once a specific framework for the measurement of risk tolerance, risk capacity and other relevant factors is established it can be run at scale and speed.”
