Is this the era of the smart investor?


The most common mistake we make trying to accumulate more wealth, is not having a strategy.

Sure, you could work overtime. But that’ll only get you so far.

However, research and a willingness to take calculated risks could catapult your financial state to new heights.

So you’ve got some money, and you’d like to see it grow. Sounds like it’s time to invest.

But how do you avoid making risky choices with reckless abandon?

You hire a wealth manager, who can help you build your strategy.

It’s no longer about hitting the broadsheets and pounding the streets.

We live in a world of pocket-sized computers. Where you have your email, social media, banking, entertainment, and everything else on one device.

PWC outlined the need for digital wealth management in their report called ‘Sink or Swim’.

Here, they identified a number of developments notable to the industry:

–       High net worth individuals are incredibly enthusiastic about adopting technology.

–       CEOs of wealth management firms recognise the need to adopt digital, but meet resistance from Relationship Managers (RMs).

–       Wealth management is one of the least tech-literate sectors of financial services.

Here, we see the disconnect making the sector vulnerable to new and better-informed competitors.

You (the customer) want tech integration for your wealth management process. For convenience.

And there’s a real risk to not adopting it.

You’ll take your money elsewhere. To someone better suited to meet your needs.

Enter the Digital Wealth Manager.

By merging wealth management with tech, there’s a greater ease of access and transparency for portfolio construction.

With apps, VLOGS, and more, plus the ability to log in from anywhere to manage your investments at any time.

So the flow of information happens on your terms.

That means no more scrambling to get a few hours of your relationship manager’s time each month. Now you can access the information you need quickly and easily. Whenever you want it.

‘Nutmeg’ is now the largest digital wealth management company in the UK. You can start with as little as £100.

They’ve designed a user friendly, intuitive app that lets you define your goals.

Nutmeg clients appreciate getting to choose how their portfolio is managed. You can pick between:

–       Socially responsible, for those of you who want to balance performance and ethical causes.

–       Fixed allocation, which only invests in assets at your risk level.

–       Fully managed, you provide the money and Nutmeg does everything they can to boost return and minimise risks.

With an increasing number of us favouring digital alternatives to legacy sectors, and no sign of that trend reversing, Nutmeg anticipated the market and carved out a comfortable position for themselves.

They currently manage around £1.7 billion for their customers.

Or take Monzo’s partnership with MoneyBox, which lets users access the savings platform and manage their wealth in a passive way.

Monzo users can opt for a ’round up’ feature. So, if the price tag of a coffee is £2.60, you get charged £3 and 40p will be rounded into savings.

The only limitation with how tech can be integrated into wealth management, is the limits of technology itself.

So, have wealth managers been replaced by digital wealth managers?

No. BNP Paribas found that most of the wealth managers have merely adapted. This has been achieved through the use of robo-advisory services.

These job enabling, not job replacing ‘robo services’ are actually a series of complex algorithms that determine what advice to give you, or in some cases, what transactions to make on your behalf.

They’re available 24 hours a day, 7 days a week, which means your wealth manager has more time to focus on making you returns.

But needless to say, you also have the option of a human touch.

In fact, many firms have developed tools to complement their personal service.

As wealth management continues to go digital, one thing is clear.

Taking your financial future into your own hands, while making solid choices under the guidance of professionals, has never been easier or more accessible.