'The robots are coming': How can wealth managers get ahead of the fintech revolution?

Nick Baker, MD of fintech solution specialist, Bakehouse Communications, explores the key questions facing wealth and asset managers as fintech sector growth challenges traditional ways of doing business.

What are the important drivers accelerating the digitisation of the industry?  There is no doubt the need to reduce costs will drive greater use of technology. In 2008, the cost to income ratio for the wealth management industry was 62% and this soared to 84% in 2014, according to Cap Gemini. Regulatory changes are fuelling rising costs. For example, the MiFID2 proposals for attributing research costs will impact margins. In addition, consumer pressure and competition from new players has driven down fund and advisory fees. This will continue, as consumers demand better value for mo...