For Alexander a likely next step would be for the banks to partner with financial technology firms, as there are clear synergies to be had – the banks have the clients the robo-advisers want, but lack the technological and service offering they have.
This has already begun to happen in other parts of the world, as is evidenced by Santander’s support for San Fransisco-based robo-adviser, SigFig’s latest funding round, and, he says is likely to happen in the UK.
Polson agreed pointing out that he was surprised that the first wave of fintech firms in the UK has lasted on a standalone basis for as long as it has.
“To me, the fact that a wave of transactions hasn’t come yet means that a lot of providers are bumbling along providing a poor customer experience,” he said.
If that situation is now beginning to change, if the banks are looking to lay down a marker in terms of what is available online to investors; to what can be achieved by fintech, it is one that cannot be dismissed by wealth managers.
While existing clients might well be satisfied with a low-tech, high-touch business model, the client of the future is likely not only to want the face-to-face service his or her forebears were used to, but also the access and ease of use that is ubiquitous in all other facets of their lives. And that is something for which wealth managers should be prepared.
