Aussies with assets worth over $1 million are expected to number 215,000 by 2025, while those with assets exceeding $30 million are tipped to add 20 per cent growing to 3,800 people over the same period, new research by Oxford Risk has shown.
According to the researcher, while this growth represents “a huge opportunity” for wealth managers and financial planners in Australia, they need to embrace technology and algorithms to deliver a better service.
Bianca Kent, head of client and strategy at Oxford Risk explained that clients are becoming more demanding and expect greater sophistication and tailored solutions to meet their specific needs.
“To achieve this, wealth managers and financial planners must make greater use of technology,” Ms Kent said.
Similarly, her colleague, Greg Davies, the head of financial behavioural finance at Oxford Risk, stressed the importance of technology in delivering greater value to clients.
“Wealth managers need to employ more software to cancel out decision ‘noise’ and irrelevant factors such as an adviser’s current mood, the time since their last meal, or the weather, so that they can become more consistent in the service they provide to clients,” Mr Davies said.
“Greater use of technology can help ensure they have a better measurement of risk tolerance, risk capacity and other relevant factors affecting clients, and the system can then be established and run at scale and speed.”
