With 86% of people in Switzerland considering the ability to make self-determined financial decisions a fundamental need, the wealth management sector will need to re-invent its advisory approach as well as its investment product and service offering in order to leave a mark in a world where clients’ expectations have evolved beyond the traditional understanding of the capital markets industry.

The digital age has equipped investors with unprecedented access to information that can be either overwhelming and distracting - or be the secret to financial success. Naturally, such an environment brings a significant transformation in the expectations of clients. They are looking for wealth managers leveraging data to provide insights and strategies beyond the basics. Personalised advice and proactive engagement have reshaped advice delivery and many of the investment vehicles themselves.

Just like clients are used to targeted ads based on their buying preferences, and movie recommendations based on their watching history, they no longer settle for one-size-fits-all investment strategies.

Those who prefer a hybrid solution may still enjoy the human touch of a wealth manager, but now they are armed with personalised advice tailored to their individual financial circumstances, risk tolerances, and long-term goals. Others who want to exercise greater autonomy may prefer to have that advice, still based on advanced analytics and big data, delivered directly to their apps and other channels of consumption.

Rather than annual or quarterly check-ins, technology facilitates real-time monitoring of market changes, leading to proactive decision-making. Automated alerts triggered by changes in market conditions or shifts in a client's financial situation prompt timely advice transmitted by automatic notifications or live chat can enhance client engagement and reinforce the empowered nature of investing.

As a result, we will witness a change in the dynamic between wealth managers and investors, who expect more frequent interactions and updates.

Going a step further, prioritising continuous and embedded education within investing technology will bring forth a new class of empowered investors.

This would not be considered financial advice in the legal definition, but instead offer timely and relevant content in the most salient format, whether it be rich media or text. Most wealth managers already have this information, and it is just a matter of leveraging the data to create a better experience for their clients.

Recognising the constraints of their investment legacy systems, wealth managers are increasingly integrating third-party services and data into their ecosystems. Access to external data, including alternative data sources, enhances the depth of analysis and provides a more comprehensive view of market trends. Collaborations with specialised providers, such as those dealing with cryptocurrency or private equity markets, broaden the range of investment opportunities available to clients. It makes sense for wealth managers to work with technology providers rather than developing in-house, enabling them to focus on what they do best - cultivating customer relationships.

Despite the many advantages, barriers to the widespread adoption of technology in wealth management persist. Concerns about data security, regulatory compliance, and the loss of human touch in financial advisory are topics that need addressing. Striking the right balance between technology-driven efficiency and personalised human interaction will be the main challenge ahead.

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