At this year’s FinTech Talents Festival, our Founder, Oliver Lane, hosted a panel titled, “Innovation Spotlight: Has Innovation in Wealth Management Tools Delivered?” This session gathered insights from industry leaders to explore whether wealth tech innovations have genuinely expanded access, improved experiences, and kept pace with digital demands.
Joining Oliver were Jürgen Blumberg, Chief Operating Officer, EMEA, ETF Accelerator at Goldman Sachs, Bola Sol, Financial Adviser, Grazia Money Columnist at Refined Currency, Elliott O’Brien, Head of Business Transformation at LGT Wealth Management, and Mariya Brown, Head of Innovation, Pershing EMEA at BNY Pershing. Together, the panel examined the progress and ongoing challenges in wealth management innovation.
The Innovation Hurdles: Culture, Legacy Tech, and Regulation
The panel highlighted key barriers to innovation. Legacy technology remains a significant hurdle; many institutions struggle with outdated systems that hinder their ability to respond quickly to evolving market demands. Cultural resistance and the need to up-skill teams to adopt new technology also present considerable challenges. Furthermore, stringent regulatory requirements consume substantial resources, limiting the time and capital firms can dedicate to customer-focused innovation.
Opportunities: Alternative Assets, the Digital Shift, and AI-Driven Innovation
Despite these challenges, the panel identified exciting opportunities. The growing interest in alternative asset classes, such as ETFs, crypto and private equity, offers new avenues for both traditional wealth managers and neo-brokers. This demand pushes heritage brands to adapt, while newer firms can innovate quickly, unburdened by legacy tech constraints.
The rise of digital as the primary engagement channel with clients presents another opportunity. As consumers increasingly manage their financial lives online, legacy wealth management firms must keep pace to stay relevant. Neo-brokers, agile by design, are well-positioned to offer seamless and personalised digital experiences, setting new standards in the process.
AI is also creating new possibilities, both in innovation and user experience. By integrating AI-powered tools, wealth managers can offer personalised financial advice, predictive insights, and automated services that make managing wealth simpler and more intuitive. These AI-driven capabilities not only streamline operational efficiencies but also provide clients with a more engaging, tailored experience, setting a higher bar for customer satisfaction and loyalty in wealth management.
So, has innovation in wealth management tools delivered?
The consensus: The jury is still out!
Innovation is an ongoing process, and while progress has been made, there is still a long way to go. The industry has chipped away at constraints, but as consumer expectations rise, the demand for continued innovation will only grow. Increased competition, fuelled by accessible new technology, drives all players to keep advancing — which ultimately benefits the consumer.
In closing, wealth tech’s journey is far from over, but the industry’s current trajectory is promising, with a focus on accessibility, efficiency, and customer experience at its core. With these insights, the future of wealth management innovation looks set to deliver even more for both the industry and its customers.
