Because of this disjuncture between these images, both positive or negative, and the current reality, it becomes easy to dismiss the fintech revolution as a Godot-like figure that will never actually arrive.
And this is where the danger lies for wealth managers. Lean too far into the Godot analogy and it becomes easy to stick one’s head in the sand. As a strategy this may be fine with your current client base, but as Warren Mead, KPMG’s Fintech lead and the firm’s other speaker at the event pointed out, technology as it currently stands is that it has made financial services nigh invisible.
You can pay for your shopping with your watch and buy a TV in two clicks on instagram; transfer money to a relative using an app and all the while never think about a bank.
Knowledge and adaptability
Of course, that is not to say that people don’t or won’t need advice in future, or that they will eschew financial services entirely. But, rather, that wealth managers need to be conscious of the fact that not only are their current clients expecting the same level of digital access to their financial life as they have to other services, but also that without technology finding new clients will become increasingly difficult.
Equally, however, leaning too far in the other direction and rushing into every new piece of kit that comes along is unlikely to be the right solution.
For Alexander, the key attributes that wealth managers are going to need going forward are identity and agility. Knowing exactly what type of business you want to be, what services you will and won’t provide is going to be crucial as will an ability to adapt to changing conditions quickly.
“The days of mammoth, expensive technological projects that take years to sign off and even longer to implement are gone. One has to be willing and able to move quickly,” he said.
But, that can only come if one has a clear view of the route ahead. When it comes to fintech the route is littered with both dragons and windmills the challenge as the sector heads down it is going to be deciding which is which.
