Dubai: Nearly half of financial advisers in the GCC were upbeat about the prospects for robo-advice, even if only 35 per cent of them saw it as an opportunity for their businesses in 2017, according to the 3rd annual EY GCC Wealth and Asset Management 2017 report.
Meanwhile, 22 per cent saw robo-advice as a threat to their business, as we see the significant development of automated advice in the region, EY said in a statement.
“Technology has revolutionised industries all over the world, and the GCC wealth management industry is no exception. Strong client preference for digital channels and the pressure to grow revenue mean wealth and asset managers must rethink their strategies, operations and technologies. Adapting early to the new reality will open the door to profitable future growth opportunities. The leaders will be those who harness blockchain, automated-advice, artificial intelligence and robotic process automation. The recent focus on particularly for crypto in the region set the scene for a dynamic landscape for institutions moving forward,” George Triplow, EY Mena Wealth and Asset Management Leader, said in a statement.
“Going forward, we can expect to see a large number of asset managers and independent advisers partnering with skilled technology firms that are able to optimise robo-adviser technology much more efficiently than they could do in-house,” Triplow added.
Digital wealth managers will dramatically increase their market share over the next few years and control roughly a third of the global wealth management industry in 2025.
