{"id":10963,"date":"2015-03-31T09:29:16","date_gmt":"2015-03-31T08:29:16","guid":{"rendered":"http:\/\/blog.debitos.de\/?p=10963"},"modified":"2015-03-31T09:29:16","modified_gmt":"2015-03-31T08:29:16","slug":"fintechs-attack-not-only-global-wealth-management-industry","status":"publish","type":"post","link":"https:\/\/www.debitos.com\/de\/news\/fintechs-attack-not-only-global-wealth-management-industry\/","title":{"rendered":"Fintechs attack (not only) the global wealth management industry"},"content":{"rendered":"

The global wealth management industry is subject to permanent change and struggles to master complex challenges. At the same time, an increasing number of well-funded startups is stirring up the market with disruptive business models. New firms like Betterment, FutureAdvisor, Wealthfront and Personal Capital are continuosly skimming potential and existing clients from the established wealth management top dogs<\/a>\u00a0like UBS, Bank of America and Morgan Stanley. These incumbents each\u00a0still handle between $1.5 and $2 bIllions\u00a0of assets under management (AUM). However, fintechs are eager to\u00a0seize the moment and grab their share of the market with customer centric, intuitive approaches to wealth management that attract especially the younger generation of high net worth individuals. As the wealth management market\u00a0become more and more characterised by a high degree of heterogeneity,\u00a0fintechs offer a wide range of important benefits.
\nWealth management fintechs initially\u00a0target niches such as the \u201eHenrys\u201c<\/strong>
\nThe secret of the fintechs’ success is the result of many factors. Founded and run by the\u00a0young, aggressive and eager\u00a0entrepreneurs, the new kids on the wealth management block target niche markets thei understand better than their established competitors such as the\u00a0\u201eHenrys\u201c<\/em>, folks with\u00a0\u201ehigh earning, not rich yet\u201c<\/em>. They therefore\u00a0do yet overlap with the multi-million-dollar\u00a0target customer segment that the big shot wealth management firms address. Yet. Backed by\u00a0powerful banks and investors like Citi Ventures and Black Rock, they are expected to venture into the incumbents’ space rather sooner then later. Given their highly automated advising algorithms and offers that cater exactly to the needs of their target customer group, fintechs offer information at the private\u00a0investor’s fingertips whenever the customer decides to use it. As their customers grow from high earning to high net worth, the likelihood that they stay with their fintech wealth manager is high. And there is one more important aspect: FinTechs not only put\u00a0the user in control but also score with small fees and low minimum investment sums.
\nFintechs\u00a0are a huge\u00a0opportunity for banks<\/strong>
\nWhile some banks might see fintechs as a threat,\u00a0they also are a huge opportunity that can be seized if approached intelligently. Anything from a benchmark to cooperations, acquisitions and\u00a0integrations is possible. The one thing banks should not do\u00a0on but unfortunately often fall back to is sit back and watch until one day they realize that they are too late in the game. Unfortunately, the vast majority of banks are\u00a0moving too slow to keep up with the fast-paced fintech world. Some adopt new approaches to old business models like those players, who already use our online-platform to sell their non-performing loans<\/a>. While we certainly do not reinvent the wheel, taking NPL-trading online speeds up the\u00a0transaction process, lowers coordination cost and increases transaction prices due to direct and visible competition between the investors. A sexy package that is tough\u00a0to beat. This being said, it always takes a banker who is not imprisoned in old behavior and open to\u00a0innovative business models.\u00a0We are convinced that in five\u00a0years from today, only banks with these kind of bankers will stand a chance to survive in an ever-fiercer financial markt.<\/p>\n","protected":false},"excerpt":{"rendered":"The global wealth management industry is subject to permanent change and struggles to master complex challenges. At the same time, an increasing number of well-funded startups is stirring up the market with disruptive business models. New firms like Betterment, FutureAdvisor, Wealthfront and Personal Capital are continuosly skimming potential and existing clients from the established wealth… mehr erfahren<\/a>","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[56,66,16,15,71],"class_list":["post-10963","post","type-post","status-publish","format-standard","hentry","category-nachrichten-de","tag-fintech","tag-neuigkeiten","tag-non-performing-loans","tag-npl","tag-start-up"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/posts\/10963","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/comments?post=10963"}],"version-history":[{"count":0,"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/posts\/10963\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/media?parent=10963"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/categories?post=10963"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.debitos.com\/de\/wp-json\/wp\/v2\/tags?post=10963"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}