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Wealth managers underestimating HNWI

According to the report, released today by RBC Wealth Management and Capgemini, 48.1% of HNWIs globally said they would consider having a portion of their wealth managed by an automated advisory service, although only 20% of wealth managers were of the view that their high net worth clients would do so.

The highest differential was found in the Asia ex-Japan region where 76.3% of HNWIs said they would do so, compared to 19.3% of wealth managers, while the lowest gap was in North America where the propensity to use such services is only 33.5%, while 17% of wealth managers thought their clients would use robo-advice.

According to the report: “Wealth managers are skeptical of automated advisory services, noting that they forgo the personal relationships that enable wealth managers to build trust and deliver tailored advice and solutions. However, some forward-thinking firm executives are beginning to acknowledge that automated services will increasingly have a place in the wealth management space.” The report adds: “Automated advisory services do not appear to be a passing trend, given the degree of interest from younger HNWIs. In keeping with their preference for digital collaboration, HNWIs under 45 are much more inclined to take advantage of automated advice (67%) compared to those over 45 (38%). 

Part of the Mark Allen Group.