Asset managers must segment investors by digital awareness rather than age and not assume only younger investors are comfortable with tech-driven advice, researchers say.
Cerulli Associates said the majority of asset managers considered digital intermediation as the exclusive preserve of younger investors, despite a significant number of more mature high-net-worth individuals who are comfortable using digital services to access their portfolios, seek guidance, and execute transactions.
In Asia, where digital comfort was higher than elsewhere, it was not restricted to the young. Preference for digital interaction with financial advisers among 18–35 year olds in the region was over two-and-a-half times higher than in Europe, and almost six times higher than the United States, but just over three-quarters of people aged 48 to 67 also expressed a preference for email contact.
Cerulli also said asset managers were failing to use big data as effectively as retail banks and the cost to the industry manifested as lost opportunities to identify revenue-generating opportunities, and to underpin existing client relationships.
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