Fintechs worldwide are launching apps that leverage artificial intelligence to provide wealth management services to high-net-worth individuals.
Singapore has a significant concentration of high and ultra-high-net-worth individuals, with investible assets exceeding $1 million and $50 million, respectively. To cater to this niche, firms like U.S.-based fintech Arta Finance have entered the market. In October, Arta launched a platform in Singapore that is touted to be faster and more cost-effective than traditional wealth management avenues.
Another emerging platform, Moomoo, has already established a presence in the region with its mobile trading app, built around lower commissions. Moomoo Private Wealth markets its platform as offering a wide range of financial assets.
“Asian firms like Arta are aggressively targeting ultra-high-net-worth clients through fee reduction and access,” said Greg O’Gara, Lead Digital Wealth Analyst at Javelin Strategy & Research. “While these have been dominant themes for the U.S. wealth-tech transformation, U.S. fintechs are going further to focus on comprehensive platform integration.”
“This suggests that Asian providers may need to pivot toward a more sophisticated technological infrastructure to achieve sustainable scale in the $21.7 trillion APAC market,” he said.
Disruptive Technology
The emergence of disruptive technology like AI and self-directed investing platforms has had a significant impact on the wealth management industry, which was traditionally known for offering exclusive, personalized solutions.
To remain competitive, many of the world’s most established wealth management firms are embracing new technologies. As CNBC noted, Singapore’s DBS Private Bank has invested heavily in AI and digitalization to enhance client meetings and improve portfolio monitoring.
This “phygital” solution—which includes both an advisor and digital tools—may be adequate for many use cases, but it will likely not be enough to satisfy clients’ surging expectations.
“While DBS’s “phygital” strategy represents a strong incumbent response in Asia, the U.S. market’s emphasis on API-first architectures and modular service packages indicates that Asian wealth managers might be underinvesting in the technological foundation needed to support generational wealth transfer and comprehensive service delivery,” O’Gara said.
Emerging Investors
The demand for digital solutions has been accelerated by the emergence of Gen Z investors, who, in general, have started investing earlier than previous generations. To engage a more digital-first audience, both Arta and Moomoo have opted to promote their platforms on social media rather than hosting exclusive events.
However, concerns persist that a fully digital wealth management solution could jettison the human touch that has long been a hallmark of the industry.
“The U.S. wealth management industry’s focus on transforming advisor capabilities and talent development contrasts sharply with Asian fintechs’ technology-first approach,” O’Gara said. “It suggests that successful firms in Asia will need to balance their digital innovation with human advisory capabilities to capture the growing complexity of wealth management needs in the region.”
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