The winner takes all in the digital world

Fintech companies will no longer pose a threat to private banks, but technology companies, such as Google and Amazon will.

This was a key takeaway from several heads of digital departments at private banks and asset managers at the recent Private Banker International Global Wealth Summit in Singapore.

The argument is that while Fintech players can be partnered and bought up, big tech firms such as Amazon and Google cannot.

With this threat of disruption on the horizon from tech giants, it is little wonder that Standard Chartered has recently introduced a new digital wealth management service known as Personalised Investment Ideas that will offer tailored investment ideas for its priority banking clients.

The service, available on the relationship manager’s (RMs) tablet-based sales-and-service device, integrates algorithms and analytics with the bank’s market expertise to generate automated investment ideas for funds and bonds.

Investment ideas are delivered based on clients’ risk profile and the bank’s market views. Clients are then sent a report via email with buy/sell/hold recommendations following a conversation with their RM.

The service has been currently launched in Singapore, with plans for a broader rollout across other Asian markets later.

Wealth managers and private banks in Asia, like the rest of the world realize that in the new digital world, the winner takes all.