India’s wealth management industry will experience accelerated growth after fully embracing digital technology, according to global fintech player Miles Software Solutions CEO, Milan Ganatra, who cites a current robust equities market and startling numbers of AUM being declared by mutual funds vendors.
This growth, Ganatra says, is due to new-age customers with investor education expecting different types of markets and a fuller degree of service, which he says will be available through digital technology being deployed throughout the industry.
Ganatra predicts that firms throughout the industry will adopt a hybrid model with in-house advice being complemented by advice from a digital platform; a co-existence and combination of a science and the practised art of an investment advisor.
“HNI clients expect to be able to track their goals. Their expectation is to be able to manage risk and receive the right management tools with ease of execution,” Ganatra says. “Each of these areas has technology playing a significant role, with the technology understanding the goal of the client and being able to show the track of when these goals are likely to be achieved goals.
“Historically, this has never been available and neither has stress tests. Wealth managers will be able to manage the risk of client much easier from now on. Digital will have significant role, whether it is done by advisor or achieved through robotic means.”
Ganatra maintains that most wealth management firms in India have already invested significantly on research technology platforms, with further investment to follow, which is fuelling and allowing growth in addition to promoting greater trust by clients in their advisors.
He concludes by saying: “India’s wealth management industry is set to grow significantly from here. Customer expectations are extremely high and are much more now than a proficiency statement; it is how efficiently and efficiently you can deliver advice.
“Advice can be given only if information is known about a customer and about the needs and goals, while tracking these goals. Technology is the only solution for wealth managers and they will have to scale it up.”