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Produced by:
Amit Singh
Director of Transformation & Change, UBS Asset Management
Competition can be addressed by focusing on the unique value proposition, leveraging established client relationships, and continuously innovating to stay ahead.
There is a growing demand for comprehensive financial services that cover both banking and wealth management. Should organisations be capitalising on this opportunity?
The financial needs of clients differ, and it's challenging for any asset manager to offer everything a client desires. Asset Management and Wealth Management are fundamentally distinct. Therefore, you won’t find a single business offering both Wealth Management and Asset Management through a single entity as it would be costly and extremely complex operationally. Organisations should carefully evaluate the market demand, profitability, and the ability to deliver a seamless customer experience before deciding to enter this space.
Fintech companies are creating integrated solutions that combine banking and wealth offerings, attracting younger customers. Do you see these fintech companies as a competitive threat, and what can established organisations like yours do to address this competition?
Fintech companies operate in a different environment with different regulatory expectations. While they excel in customer experience, legacy organisations have an advantage of years of expertise and trust. However, if fintech companies aim to enter asset management, they will face a different regulatory environment, competition and customers expectations.
In today's financial industry, there is an ongoing debate about the right balance between customer-facing digital capabilities and face-to-face interaction. What is your perspective on this matter?
I believe it's not a binary choice but a combination of both. While self-service capabilities are crucial for accessing information, robust reporting, and tracking portfolio performance, human interaction becomes essential in addressing issues, dissatisfaction, and providing deeper discussions. High net worth individuals or institutions investing substantial amounts often require face time with professionals to address their concerns. Striking the right balance is essential.
Loyalty in the wealth management industry has diminished, and competition is fierce. How can firms offer a seamless and personalised experience while adapting to changing customer preferences?
It's important to offer enhanced digital capabilities that enable self-service and information access, as many investors now expect these features. However, timely responses and addressing concerns should also be a priority. Firms should focus on optimising digital convenience, while still valuing the customer experience. By understanding the response and requirements of investors, a hybrid approach that combines seamless digital capabilities and human elements can work best to meet their needs effectively.
By understanding the response and requirements of investors, a hybrid approach that combines digital and human elements can be tailored to meet their needs effectively.
While AI works on a massive amount of data and fine-tunes its models based on additional information, there is a risk that biases in the underlying data can be reflected in AI responses.
There has been talk about the potential disruption caused by tech giants like Amazon and Google entering the wealth management industry. Do you think these companies will build their own applications or prefer partnering with existing wealth managers to provide personalised services?
I see opportunities for both approaches. Tech giants like Amazon and Google can collaborate with wealth managers to provide information and streamline processes for consumers, making the experience more convenient. However, considering the long-term profitability of the wealth management industry, there is also a possibility that these tech giants may try to enter the market themselves. They have the resources, capital, and potentially trust-building capabilities to succeed if they meet regulatory requirements and navigate the industry effectively.
Data and AI have become significant topics in the financial industry. Do you see data as a key strategy for wealth managers in the next 5-10 years, and how can AI leverage data lakes to hyper-personalise services?
Data has always played a central role in financial services. AI still has a way to go before it can be used in investment decision-making. While AI models work on vast amounts of data and can auto fine-tune with additional information, there is a risk that biases in the underlying data can be reflected in AI models output, for example, expecting a sustainability focused output from an AI model running on data which is skewed towards the polluting industries. Nevertheless, with well-defined boundaries, industry standards, and regulatory framework, leveraging data lakes and AI can be harnessed to hyper-personalise services and enhance investment strategies, and potentially reduce operational costs.
About UBS Asset Management
UBS Asset Management is a leading global asset management firm. With a strong presence in the financial industry, it offers a wide range of investment solutions and strategies for clients worldwide. Leveraging its expertise and innovative approach, UBS Asset Management aims to deliver superior investment performance and help clients achieve their financial goals. Backed by a long history of excellence, UBS Asset Management continues to be a trusted partner for investors seeking reliable and tailored investment solutions.
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