The wealthtech book : the fintech handbook for investors, entrepreneurs and finance visionaries

TABLE OF CONTENTS Preface viii About the Editors xi Acknowledgements xiii 1. Introduction The Augmented Investment Management Industry 7 FinTech Disruption Across the Wealth Management Value Chain – Will FinTech Dominate the Wealth Management Model of the Future or is there Still a Place for Traditional Wealth Managers? 11 Embracing Emerging Technology 16 WealthTech – Business as Unusual 19 Welcoming an Artificial Intelligence Robot as a Colleague 23 Essential Digitization in Wealth Management 28 Becoming Millennial-Minded is Key for WealthTech 31 “To Infinity and Beyond!” – Building WealthTech Applications has Never Been Easier 34 2. Digitizing Client Advisory and Robo-Advisors Ten Reasons Why Digital Wealth Management Will Become a Worldwide Market Standard 42 What Do Wealthy Clients Think About Digital Wealth Management? 45 Challenges of Digitizing Wealth Management Advisory 50 The Hybrid Advice Model 53 No “One Size Fits All” – Personalized Client Service and Social Selling in Wealth Management 57 How to Give “Sleep-Tight” Robo-Advice 62 How Gamification Can Attract Consumers to Sign Up 65 The Counter-intuitive Reality of Robo-Advice Demographics 68 How Emerging Technologies Will Change Emerging Markets – Welcome Robo-Advisor X.0! 71 Presentation Technology – Enriching the Client Experience in a Physical and Virtual World 74 Digital Super Powers – The Role of Artificial Intelligence in Wealth Management 77 Using Artificial Intelligence in Wealth Management 80 Digital Asset Management in 2020 – Seven Theses 83 Making Digital Advice Personal is as Important as Making Personal Advice Digital 86 3. Digitizing Wealth Management Operations Digital Business Model for Wealth Management Operations as Matchmaker of Generations 94 How a Digital Architecture Can Lead to Tangible Business Results 97 The Personalization Pillar 101 Digitizing Wealth Management 105 Survival of the Fittest – Cyber Resilience 108 4. Digital Platforms, Products and Ecosystems Wealth Management-as-a-Platform – The New Business Architecture with PSD2 116 Wealth Management – Preparing for a Digital Revolution 120 How to Digitalize Wealth Management at Banks 123 Key Success Factors in Gaining Market Share and Scale in Alternative Lending 127 Personal Financial Intelligence – AI and the Future of Money Management 132 Financial Forecasting and Portfolio Optimization in the 21st Century 135 AI-Powered Wealth Management Products and Investment Vehicles 138 Wealth Managers Can Deliver Effective Client Outcomes with a Data-Driven Investment Process 142 The Business Case for Gender Equality 147 Fiduciary Robo-Selection is Possible in a New Fund Order 151 5. Blockchain Applications in Asset and Wealth Management Cryptocurrencies and Blockchain 158 How Blockchain Drives Innovation in Asset Management 162 Use Cases and Monetization Challenges of Blockchain Applications in Wealth Management 166 Blockchain as a Backbone to Asset and Wealth Creation 170 Dreaming of a Ledger-Free, Globally Connected Wealth Management Industry 173 Trust Arbitrage and the Future of the Wealth Manager – How Blockchain Innovations Can Crack the Code 177 Investment and Issuance Distributed in Blockchain 181 6. Founders’ Success Stories Launching MeDirect Bank as a Challenger Bank 190 Empowering Women Financially – The Why and the How 194 Why I Left Goldman Sachs for FinTech 197 Moneymeets.com – Germany’s Leading Personal Finance Management Portal 199 The 100 Trillion Dollar Market Failure 203 7. Enterprise Innovation Just Do It! Using the Buzz Around Innovation to Empower Banks and Asset Managers 210 Leveraging Corporate Innovation by Opening Banks to External Ecosystems 213 Wealth Management is Dead, Long Live Wealth Management 216 8. Global Overview of WealthTech Is the Future of WealthTech Already in China? 224 WealthTech in Latin America 227 Challenges in the Japanese Wealth Management Market – Digital Issuance and Distribution of Japanese Real-Estate Securitized Products 231 How to Unlock WealthTech in Turkey 234 9. What is the Future of WealthTech? The Networked Client 244 The Investment Managers of the Future are Going to be Millennials 247 Empowering Asset Owners and the Buy Side 251 An Industry Driven by Digital, Data and Artificial Intelligence 254 WealthTech – Taking Private Banking and Wealth Management Digital 257 The Wealth Management Canvas – A Framework for Designing the WealthTech Firm of the Future 260 The Ingredients of IKEA’s Approach for a Starry Wealth Management – Choose to Change the Competitive Arena in a Mature Sector 264 FinTech and the Wealth Management Challenge 267 Cognitive Decision-Making with “Insights-as-a-Service” 271 More Banking for Less Money 273 How AI Will Cause Robo-Advice to Completely Outperform Human Advice 275 Security in the Future of WealthTech 279 How China is Shaping WealthTech and the Future of Financial Services 282 From the Technological to the Financial Singularity – A Journey Without Return to the Future of Finance 285 Welcoming the 2058 Class of the “Galactic Academy of Wealth Management” 289 List of Contributors 292 Index 309

DESCRIPTION Get a handle on disruption, innovation and opportunity in investment technology The digital evolution is enabling the creation of sophisticated software solutions that make money management more accessible, affordable and eponymous. Full automation is attractive to investors at an early stage of wealth accumulation, but hybrid models are of interest to investors who control larger amounts of wealth, particularly those who have enough wealth to be able to efficiently diversify their holdings. Investors can now outperform their benchmarks more easily using the latest tech tools. The WEALTHTECH Book is the only comprehensive guide of its kind to the disruption, innovation and opportunity in technology in the investment management sector. It is an invaluable source of information for entrepreneurs, innovators, investors, insurers, analysts and consultants working in or interested in investing in this space. • Explains how the wealth management sector is being affected by competition from low-cost robo-advisors • Explores technology and start-up company disruption and how to delight customers while managing their assets • Explains how to achieve better returns using the latest fintech innovation • Includes inspirational success stories and new business models • Details overall market dynamics The WealthTech Book is essential reading for investment and fund managers, asset allocators, family offices, hedge, venture capital and private equity funds and entrepreneurs and start-ups.