Wealth and asset management
Editorial by Rick Huckstep
The digitalisation of wealth management is evolving at a rapid pace. A key driver for this is the consumer. For too long it has been an opaque category within financial services, both confusing and difficult to access for consumers.
But with the wholesale adoption of mobile as the primary mechanism for digital engagement, especially among the millennial generation, the industry risks losing touch with its customer base without this overdue modernisation.
For this month’s InsurTech Insights, we take a look at the subject of wealth management from an insurance perspective.
In the feature article from KPMG, Jill Hitchen from KPMG’s UK Insurance and Investment Management practice sets out a three-step approach for digitisation. In the article, Jill suggests that firms avoid the trap of large scale, technology transformations in their digital strategy.
It’s sound advice as we’ve all (sadly) seen examples where the sheer scale and complexity of a major technology change programme overwhelms, overruns and overspends. A case in point in the UK is the TSB bank’s bungled IT migration that is still unresolved.
Instead, Jill makes the case for smaller technology investments to achieve value more quickly. She argues that traditional approaches like blue sky planning and roadmaps should be replaced by a fast and iterative “test and learn” philosophy. Essentially, suggesting that the large corporations learn a thing or two from the startup world. It’s an approach that still works for Amazon, one of the most valuable companies in the world.
By contrast, in my article for InsurTech Insights, I look at the subject of retirement savings in the US.
It’s a problem area that is ripe for fresh thinking, an entrepreneurial approach and digitisation. Despite years of trying to improve the pension system, it is still the case that almost half of Americans do not have access to a retirement plan at work. And many millions of Americans have not saved anything like enough for retirement.
For my article, I spoke to an old friend of mine, Matt Carey, the CEO and co-founder of startup Blueprint Income. This is a digital retirement savings platform that is designed and built for millennials. Like all digital new players (disruptors?), it has a clear and easy to understand proposition. It’s also totally mobile, easy to access and flexible in offering a new generation of customers an updated approach to the annuity.
The annuity product is an old world approach long overdue a refresh and reinvention. To explore this further, Rick Huckstep spoke with Matt Carey, CEO and co-founder of Blueprint Income.
Digital wealth and asset management technologies are attracting greater market attention, yet when it comes to effective use and integration of these technologies, wealth managers lag behind banks and other industries.