Impact of Technology on Wealth Management

Financial Technology Partners is a San Francisco-based investment-banking firm focused, appropriately enough, on the financial-technology industry. I managed to get my hands on its new (though non-public) report of how fintech is altering the landscape for money management. The report looks at industry trends, interviews numerous fintech executives and sizes up all of the usual big picture Silicon Valley stuff.

For those of you who may not have thought much about how technology might affect Wall Street, the work you do each day, and how you do it — not to mention what it means for your careers — this report is invaluable.

Let’s start with that term “Wall Street,” which no longer implies location in lower Manhattan. As technology allows anyone to work from anywhere, being in a corporate office matters less than ever. This is to be welcomed in many ways, but will surely change the cultural definition of what it means to work in finance.

But technology is doing more than freeing us from being bound to a specific location; it is altering how we work. This is changing radically, based on the advances in the tools we use to accomplish our daily tasks. Although there have been some notable setbacks, many fintech companies are well-funded and run by people who are both tech and finance savvy. As much as Jamie Dimon and Lloyd Blankfein, these are the folks who may end up having the greatest impact on finance during the next few decades.

As of now, we can’t yet tell if the new automated algo-driven asset allocation solutions known as robo-advisers are a fad or the way of the future. (My best guess is they are somewhere in between).

What is much more interesting to me is how the traditional money-management industry will respond to and adopt the latest technologies for helping it operate more efficiently and with greater client satisfaction. Some look at the newest technologies as a disruptive threat; it’s more likely that they are a boon for the asset-management business.


Continues at: Fintech Is Ending Money Management as We Know It


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