Amid the growing complexities of regulatory changes, the emergence of novel asset classes like cryptocurrencies, and the international expansion of families and businesses, the essence of wealth management - the human connection - is increasingly overshadowed. Advisers, burdened by an array of checklists and forms, find it challenging to allocate time for meaningful interactions with clients.

This has significantly impacted the depth and quality of client relationships, leading to an approach that has become more transactional than relational. This raises an important question - will technology further widen the gap in human connection?

However, even as a technology aficionado, Tomas Hurcik, CEO and Co-Founder of ORCA, recognises where the true magic lies: “In a world flooded with digital solutions, the real richness and value in wealth management is and has always been in understanding the human stories behind the numbers,” he says. This view is essential in an industry where technology is frequently misunderstood and misused as a replacement for personal interactions, rather than a tool to enhance them.

When used effectively, technology can significantly reduce the administrative load, allowing wealth managers to engage in deeper, more empathetic interactions with clients. Traditional, product-centric practices are evolving into a model that prioritises meaningful relationships over simple financial transactions. This evolution is not just a preference, but a necessity to meet the changing needs and expectations of the new generation of wealth owners, who demand more attentive and engaging service from their wealth managers.

The modern approach to wealth management involves seeing the client not just as an investor, but as an individual with unique aspirations, concerns, and values. It is about going beyond the numbers to embrace their personal stories, victories, family legacies, and aspirations.

A key aspect of this evolution is using technology to streamline time-consuming and non-relationship-enhancing tasks such as KYC and compliance conversations. Simultaneously, technology should be capable of vividly presenting a client’s story, simulating scenarios at the click of a button, and assuring clients that their advisers fully understand their situation.

Clients will have confidence in their wealth management journey during turbulent times if they trust their advisers. This trust is built on the belief that the adviser understands them, possesses competence, displays sound judgment, and comprehends what is at stake. The objective is to use technology not as a replacement for human interaction but as a facilitator that enhances these connections, reducing low value add administrative tasks and fostering more significant human interaction.

The ultimate aim is to develop not just financial plans, but comprehensive life plans for clients.

Looking to the future, it is clear that technology will continue to transform the wealth management sector. Yet, at its core, wealth management is about individuals' personal stories, dreams, and aspirations. In these narratives, the human touch remains vital to the heart of wealth management, and in the future, it will be augmented, not replaced, by technology.

Interested in reading the full report? You can read this edition of the Swiss WealthTech Landscape Report 2024 online here.