Wealth Managers Face Existential Crisis

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    More than $2.7 trillion AUM is expected to be controlled by Robo-Advisors by the end of 2023. This comes at a crucial point in the asset management industry as investors are chasing exposure to AI-driven solutions - leading to a projected $800 billion investment in the North American digital wealth management sector by 2026AI's capital rally goes beyond mere buzzwords, as it has become a top priority for nearly 50% of technology executives as per #CNBC's survey in 2023 and Generative AI is being hailed as the defining moment of the decade 

     

    This wealth-tech bull run has a vibrant demand side as more than 70% of global High Net Worth Individual (HNWI) accounts report exposures to digital products and strategies with their wealth managers – which is giving rise to heightened demand for solutions such as risk and ESG analytics, especially in the wake of regulatory developments including Europe's Sustainable Finance Disclosure Regulation (SFDR) 

     

    Read on as Jasper Colin’s Market Watchdog delves into the landscape of re-emerging interest for AI in the wealth management domain and the related expert perspectives in 2023.