Wealth and Asset Management in the FinTech Age

Edited by:
Patrick Schueffel, Institute of Finance at the School of Management Fribourg

Published 2019

The book “WealthTech: Wealth and Asset Management in the Fintech Age” is the primary resource for the wealth and asset management technology revolution. It examines the rise of financial technology and its growing impact on the wealth and asset management industry. Written by thought leaders in the global WealthTech space, this volume offers an analysis of the current tectonic shifts happening in wealth and asset management and aggregates diverse industry expertise into a single informative book. It provides practitioners such as wealth managers, bankers and investors with the answers they need to capitalize on this lucrative market. As a primer on WealthTech it offers academics clear insight into the repercussions of profoundly changing business models. It furthermore highlights the concept of the ongoing democratization of wealth management towards a more efficient and client-centric advisory process, free of entry hurdles.

This book aggregates facts, expertise, insights and acumen from industry experts to provide answers on various questions including: Who are the key players in WealthTech? What is fueling its exponential growth? What are the key technologies behind WealthTech? How do regulators respond? What are the risks? What is the reaction of incumbent players?

This book not only seeks to answer these questions but also touches on a series of related topics:

• Get up to speed on the latest industry developments
• Understand the driving forces behind the rise of WealthTech
• Realize the depth and breadth of WealthTech
• Discover how investors react to the growth in WealthTech
• Learn how regulators influence the evolution of WealthTech business models
• Examine the market dynamics of the WealthTech revolution
• Grasp the industry’s potential and its effects on connected sectors
• Build acumen on investment and entrepreneurial opportunities

A unique product for the market place
Digital transformation is creating game-changing opportunities and disruptions across industries and businesses. One industry where these game-changing opportunities will have profound impacts is wealth and asset management. For generations, wealth and asset management was a privileged service provided to co-operations and wealthy individuals. The informational advantages that wealth managers held vis-a -vis their clients provided a key competitive differentiator. In the current digital transformation climate, this differentiator is vanishing and the setting is changing. A top priority on the agenda for any wealth and asset manager must therefore be how to respond and prepare for the ramifications of this fast changing business environment. This book (one of the first to be published in this area) will provide the reader with a head start in adapting to this new digital environment.

Preface, Patrick Schueffel. PART I: INTRODUCTION. Digitizing Wealth Management: The Opportunity That Turns Into a Threat, Marc P. Bernegger. Is FinTech a Red Herring? J.P. Caldeira. FinTech: The Genie Will Not Turn Back to His Bottle, Raphael Cretinon and Jean Bonnefoy. PART II: TECHNOLOGICAL TRENDS AFFECTING WEALTH & ASSET MANAGEMENT. Information Strategy in a Changing Landscape of Investment Management, Nicolas Buerkler and Helena Steiner. WealthTech—The Brave New World? Alexander Tomenendal. The Pitfalls of Investing 4.0, Hendrik Emrich. PART III: SOCIETAL TRENDS AFFECTING WEALTH & ASSET MANAGEMENT. Democratization of Banking Services in Emerging Markets: Mexico, Felix Cardenas and Maurizio Ballesteros. Why Bitcoin Is Not a Currency but a Speculative Real Asset, Dietmar Peetz and Gregory Mall. Millennials: The New Generation of Wealth Management Clients, David Gyori. PART IV: IT MANAGEMENT, DATA PRIVACY AND REGULATORY IMPLICATIONS. The Regulation of Robo-Advisors, Richard B. Levin, Peter F. Waltz, and Robert W. Wenner. Regulating WealthTech and Robo-Advise in the EU, Ulf Klebeck. Protection of Privacy from Conception or Privacy by Design, Nicolas Steiner. PART V: FINANCIAL RISK AND PERFORMANCE MEASUREMENT. How Can Robo-Advisors Help to Enhance Investment Returns? Claus Huber. Performance Watcher, Nicholas Hochstadter. PART VI: THE COMPETITIVE LANDSCAPE. Cross Border Set Up of Crowdlending Investment Funds, Torsten Ries. The Landscape of Robo-Advisor Operators in the DACH Region, Maryna Tykholoz-Cukov. Doomed like Dinosaurs, Patrick Schueffel. PART VII: THE WIDER VALUE CHAIN. A Network of Experts is the Future of Asset Management, Anna Schmid. Decrypting the WealthTech Mindset, Richard-Marc Lacass and Berthe Lambert. Cryptoasset Portfolios: The Next Wave of Digital Asset Management, Floyd DCosta. PART VIII: PRODUCT DEVELOPMENT AND INNOVATION. How WealthTech is Re-Inventing the Customer Experience by Linking Open Innovation and Technology, Daniel Fasnacht. Venture Capital and Banks Investing in Startups via Corporate Venture Capital, Maurizio Ballesteros and Felix Cardenas. PART IX: MARKETING AND SALES. Digital Family Office 2.0, Steffen Bassler. Strategizing about Robo-advise, Claude Diderich. PART X: THE HUMAN SIDE OF WEALTHTECH. Age of Discovery: Navigating the Balance Between Human and Machine, Dimitrios Salampasis, Anne-Laure Mention, and Alexander Kaiser. A Call for More Case Studies on FinTech Innovation, Wolfgang Amann. Biographies.