Nearly half of fund managers are “drastically under-prepared” for the next generation of investors because their technology is not good enough, a report claims.
InvestCloud, a financial technology firm, surveyed 47 UK-based investment managers and 1,019 investors and found that nearly half of the investors said a firm’s digital proposition was a key determining factor in selecting a wealth manager.
However, the vast majority of wealth managers – 68% - said they knew they needed to improve their digital technology to survive.
The findings – which are in InvestCloud’s ‘The State of Digital Investment Management: Adoption and Usage in 2018’ report - found that just under half of the investors surveyed use mobile apps to manage their investments.
“This is only going to increase, and yet wealth managers are by and large very behind on mobile offering,” the report said.
John Wise, chief executive and chairman of InvestCloud, said the investment management industry was facing a “digital crisis”.
“Engagement both online and via mobile is now mission-critical for firms hoping to win the battle for the next generation of investors. Those firms who successfully manage this digital transition will gain access to a lucrative, multi-trillion-dollar market as wealth transfers to younger generations,” Wise said.
Firms could lose out to digital advice start-ups and big tech firms making an entrance into the sector, he claimed.
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