Beyond todays robo advisors – the future of digital wealth management

Fintech Circle Institute Blog

Sascha Freimueller and Dr. Ryan Held
Follow: @s_freimueller

Unlike in most consumer-oriented industries, core business processes in banking are far from fully digitized. Critical asset-and wealth management decisions such as asset allocation or investment selection are still implemented manually based on expert judgment. Digitization efforts of banks are focused on customer interfaces and the back-office. However, this will not be enough to thrive in a hyper efficient and interconnected real time digital world. Therefore, new digital wealth management frameworks are needed, covering strategic and tactical asset allocation, security selection, portfolio construction, and risk management.

This is well beyond what today’s robo advisors have to offer – solely focusing on strategic asset allocation. A digital framework will allow banks to offer value adding solutions across client segments and channels, produced in a fully automated, cost efficient and scalable way.

To build digital frameworks, rule-based investment management is the option…

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