How can tech, investment, and wealth players redefine private banking strategy together?

Introduction

In a recent Nasdaq video*, leaders from Arta Finance, BNY Mellon | Pershing, and iCapital illustrate how technology is revolutionising access and sophistication in private banking and wealth management. The discussion highlighted how tech, investment, and wealth players can together redefine strategy.

Key tech-related insights from Nasdaq

• Strategic partnerships: Collaboration between tech firms and traditional financial institutions is creating synergistic value and opening new growth opportunities.
• Value proposition: Alternative investments, such as private equity and private credit, allow to significantly improve the overall investment offering and the efficient frontier of portfolios.
• Access to alternative investments: Tech platforms boost accessibility to private investments at scale for new types of clients in the wealth space.
• CX enhancement: Digital, including AI, significantly improves the overall client experience, making wealth management more intuitive and engaging.
• Education: Technology offers new ways to educate clients on complex financial topics and strategies.

Broader strategic dimensions and implications

1. Industry shift: The financial sector is witnessing a pivotal transition towards a more cooperative dynamic.

2. Strategic alliances: Collaborations between technological innovators and established financial institutions will become more crucial for building or maintaining a competitive edge in a digital-first world.

3. Business model: Implementing an ecosystem and platform-based strategy can enable a significant competitive advantage by ensuring a seamless client experience across a spectrum of financial services.

4. Access democratisation: Technology lowers entry barriers, making advanced financial strategies accessible to a wider and more diverse audience, including NextGen clients and digital entrepreneurs.

Conclusions

The landscape of private banking and wealth management is undeniably evolving, driven by the strategic integration of technology and finance. For C-level Executives in the sector, embracing a platform-based strategy that fosters innovation, collaboration, and client diversity is not just an opportunity, it is becoming a strategic imperative for growth and competitiveness in the long run. As we look forward, adopting such strategies will enable financial firms to not only build a competitive edge but also to open new market opportunities, inviting leaders to rethink how they can best serve an evolving clientele.

* How tech is contributing to wider accessibility of private banking, Nasdaq TradeTalks, March 2024