SINGAPORE: The integration of artificial intelligence (AI) is reshaping the wealth management landscape in Singapore, as investors increasingly prefer wealth managers who leverage new technologies, a report by Avaloq has revealed.
According to the report, 79% of wealth managers in Singapore view AI as an essential component for the industry’s future, while 83% see it as a key differentiator that can offer a competitive edge.
In line with this, nearly half (47%) of investors are considering switching their wealth manager or bank, with the top reasons being underperforming portfolios (43%), insufficient transparency and communication (31%), and the reluctance of wealth managers to embrace modern technology (31%).
The report highlights that 67% of investors find it crucial to witness the impact of their investment decisions during live meetings, considering it fundamental to building trust with their advisors.
Furthermore, 65% place a high value on having access to advanced investment analytics and tools that provide clear portfolio visualization.
According to Avaloq’s findings, investor trust is heavily influenced by wealth managers’ ability to professionally manage portfolio risk while considering clients’ individual risk appetites.
This capability was identified by 77% of investors as the most critical factor in establishing a reliable advisor-client relationship. Despite these insights, many wealth managers in Singapore are dissatisfied with their current technology systems.
The report reveals that 62% find their systems difficult to navigate, while 57% cite the need to use multiple platforms, leading to inefficient workflows and poor data integration.
Additionally, 67% of professionals believe that their existing systems are outdated, making it challenging to access client data (55%) and limiting the availability of comprehensive client data analytics (52%).
As a result, many wealth managers struggle to adopt new technologies effectively. The report shows that 29% still do not use investment advisory tools during client meetings, despite 92% expressing a desire to do so.
A key barrier is the lack of an optimized user interface, which 92% of respondents indicated as a significant issue. The findings emphasize the urgent need for wealth managers to modernize their technology infrastructure to meet evolving client expectations.
As AI and other advanced technologies become integral to the wealth management sector, the ability to offer real-time insights, streamlined data management, and personalized advisory services will be crucial for staying competitive in the market.