Man Vs Machine – How Is Tech Changing The Face of UK Wealth Management/Advice?

 

Set your reminders for 3:00pm on Wednesday, 13th March to join us for the next hangout!
This time, we are trying something  different – a live debate! My guests for this session are Alan Smith, CEO of London based Capital Asset Management and Sebastian Dovey, Managing Partner of Scorpio-Partnership, consultants to the wealth management industry and author of the The Future Wealth Report.

Technology is changing the way people manage their money and everywhere you look, online wealth managers are springing up to challenge traditional wealth managers/adviser.

Enter Nutmeg! An online Discretionary Wealth Manager (DFM) that is changing how people manage their investments and essentially challenging traditional wealth manager! Nutmeg has raised £3.4m in venture capital funding, literally to give traditional wealth managers a run for their money! But how much of a competition are they? Should advisers be worried?

Over in the US, where this trend is more pronounced, services like SigFig, FutureAdvisor, Betterment and PersonalCapital, just to name but a few, are doing exactly the same time!

A recent report KPMG shows that the number of DIY portfolios valued between £250,000 and £1m increased by 122% between 2008 and 2010. Over the same period, number of DIY portfolios valued between £1m and £10m increased by 73%. Is this the beginning of the end for traditional wealth management as more and more people go online to manage their investments?

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Alan Smith, CapitalAM

In this session, I’ll be asking my guests  how much of a challenge or threat algorithm-based wealth management are to the traditional model. Surely there’ll be winners and losers but who will they be?

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Sebastian Dovey, Scorpio-Partnership

 Low-cost and transparency with fees are at the heart of what services like Nutmeg do. Add to that the fantastic user experience, convenience and scalability, these are very impressive qualities that are hard for a traditional wealth manager to match. 

How much damage has recent mis-selling scandals done to investors’ confidence in advisers? For example, UBS fined £9.45m by the FSA for mis-selling an investment fund from insurer AIG to its clients, can we expect people to turn to these digital/online wealth managers as alternatives?

 

 

 

Feel free to drop your questions  in the comments below or on twitter with the tag #finalytiqhangout.

 

How To Join The Hangout

Check out  my Google+ profile or follow me on Twitter @AbrahamOnMoney for the link to watch the On Air broadcast.

 NB

FinalytiQHangout is a live session on G+Hangout where I talk to thought leaders in the industry on a range of  hot topics and issues that are relevant to advisers.  You can  see videos of previous sessions here

 

 

 

 

 

 

 

 

Abraham Okusanya
Director
Abraham is the founder of FinalytiQ, a research consultancy for platforms, asset managers, and advisory firms. Recognised as one of the country’s leading experts in retirement income, platforms and investment propositions, Abraham has authored several papers on these subjects and delivered talks to the Personal Finance Society, The FCA and several conferences across the country.

He holds a Master’s degree from Coventry University and an alphabet soup of qualifications, including the Investment Management Certificate, Chartered Financial Planner, CFP and Chartered Wealth Manager designations. He was one of 5 finalists for the Professional Advisers Personality of Year Award 2015 but the award went to a more deserving winner, obviously!

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  • Sim Sangha

    Abraham – you’ve hit the nail on the head.  We are hosting a roundtable with DFMs next week on this very topic in conjunction with Platforum.  Will do my best to join the next hangout. Sim Sangha

    • Hi Sam, thanks for your comments and delighted you’ll be joining the Hangout. Let me knowif you have any contributions. Is your roundtable going to be online?

      • Sim Sangha

        Not immediately unfortunately. It will however by covered by Moneymarketing shortly afterwards.