WEALTHTECH Book

SUSANNE CHISHTI is the Founder and CEO of FINTECH Circle and the FINTECH Circle Institute, the leading peer-to-peer learning platform providing in-person and online courses across fintech enterprise innovation, WealthTech, InsurTech, artificial intelligence and blockchain applications in finance, crypto-currencies and startup methodologies. As Co-Editor of the global Bestseller The FinTech Book, she has been selected as a "City Innovator – Inspirational Woman" after working for 15 years across Deutsche Bank, Lloyds Banking Group, Morgan Stanley Investment Management and Accenture in London and Hong Kong. THOMAS PUSCHMANN is Founder and Director of the Swiss FinTech Innovation Lab at the University of Zurich and member of the Swiss Innovation Council Innosuisse. Before his current position, Thomas was heading a large international financial services research project at the Universities of St. Gallen and Leipzig and was a visiting scholar at the MIT Sloan School of Management. He is an advisor for many strategic national and international initiatives and an advisory board member of various institutions.

"There is... a very rich, well-written amount of information in this book that business development managers, RMs, intermediaries and, yes, clients, can exploit." (WealthBriefing.com, October 2018)"... a useful place to get ideas, inspiration and insights into what is happening in the industry, and what to expect coming down the line in the near future." (Irish Tech News, June 2018)

• Preface  viiiAbout the Editors  xiAcknowledgements  xiii1. IntroductionThe Augmented Investment Management Industry 7FinTech 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? 11Embracing Emerging Technology 16WealthTech – Business as Unusual 19Welcoming an Artificial Intelligence Robot as a Colleague 23Essential Digitization in Wealth Management 28Becoming Millennial-Minded is Key for WealthTech 31“To Infinity and Beyond!” – Building WealthTech Applications has Never Been Easier 342. Digitizing Client Advisory and Robo-AdvisorsTen Reasons Why Digital Wealth Management Will Become a Worldwide Market Standard 42What Do Wealthy Clients Think About Digital Wealth Management? 45Challenges of Digitizing Wealth Management Advisory 50The Hybrid Advice Model 53No “One Size Fits All” – Personalized Client Service and Social Selling in Wealth Management 57How to Give “Sleep-Tight” Robo-Advice 62How Gamification Can Attract Consumers to Sign Up 65The Counter-intuitive Reality of Robo-Advice Demographics 68How Emerging Technologies Will Change Emerging Markets – Welcome Robo-Advisor X.0! 71Presentation Technology – Enriching the Client Experience in a Physical and Virtual World 74Digital Super Powers – The Role of Artificial Intelligence in Wealth Management 77Using Artificial Intelligence in Wealth Management 80Digital Asset Management in 2020 – Seven Theses 83Making Digital Advice Personal is as Important as Making Personal Advice Digital 863. Digitizing Wealth Management OperationsDigital Business Model for Wealth Management Operations as Matchmaker of Generations 94How a Digital Architecture Can Lead to Tangible Business Results 97The Personalization Pillar 101Digitizing Wealth Management 105Survival of the Fittest – Cyber Resilience 1084. Digital Platforms, Products and EcosystemsWealth Management-as-a-Platform – The New Business Architecture with PSD2 116Wealth Management – Preparing for a Digital Revolution 120How to Digitalize Wealth Management at Banks 123Key Success Factors in Gaining Market Share and Scale in Alternative Lending 127Personal Financial Intelligence – AI and the Future of Money Management 132Financial Forecasting and Portfolio Optimization in the 21st Century 135AI-Powered Wealth Management Products and Investment Vehicles 138Wealth Managers Can Deliver Effective Client Outcomes with a Data-Driven Investment Process 142The Business Case for Gender Equality 147Fiduciary Robo-Selection is Possible in a New Fund Order 1515. Blockchain Applications in Asset and Wealth ManagementCryptocurrencies and Blockchain 158How Blockchain Drives Innovation in Asset Management 162Use Cases and Monetization Challenges of Blockchain Applications in Wealth Management 166Blockchain as a Backbone to Asset and Wealth Creation 170Dreaming of a Ledger-Free, Globally Connected Wealth Management Industry 173Trust Arbitrage and the Future of the Wealth Manager – How Blockchain Innovations Can Crack the Code 177Investment and Issuance Distributed in Blockchain 1816. Founders’ Success StoriesLaunching MeDirect Bank as a Challenger Bank 190Empowering Women Financially – The Why and the How 194Why I Left Goldman Sachs for FinTech 197Moneymeets.com – Germany’s Leading Personal Finance Management Portal 199The 100 Trillion Dollar Market Failure 2037. Enterprise InnovationJust Do It! Using the Buzz Around Innovation to Empower Banks and Asset Managers 210Leveraging Corporate Innovation by Opening Banks to External Ecosystems 213Wealth Management is Dead, Long Live Wealth Management 2168. Global Overview of WealthTechIs the Future of WealthTech Already in China? 224WealthTech in Latin America 227Challenges in the Japanese Wealth Management Market – Digital Issuance and Distribution of Japanese Real-Estate Securitized Products 231How to Unlock WealthTech in Turkey 2349. What is the Future of WealthTech?The Networked Client 244The Investment Managers of the Future are Going to be Millennials 247Empowering Asset Owners and the Buy Side 251An Industry Driven by Digital, Data and Artificial Intelligence 254WealthTech – Taking Private Banking and Wealth Management Digital 257The Wealth Management Canvas – A Framework for Designing the WealthTech Firm of the Future 260The Ingredients of IKEA’s Approach for a Starry Wealth Management – Choose to Change the Competitive Arena in a Mature Sector 264FinTech and the Wealth Management Challenge 267Cognitive Decision-Making with “Insights-as-a-Service” 271More Banking for Less Money 273How AI Will Cause Robo-Advice to Completely Outperform Human Advice 275Security in the Future of WealthTech 279How China is Shaping WealthTech and the Future of Financial Services 282From the Technological to the Financial Singularity – A Journey Without Return to the Future of Finance 285Welcoming the 2058 Class of the “Galactic Academy of Wealth Management” 289List of Contributors 292Index 309