Use of big data analytics or consumer behavior data offers a possibility for asset managers to structure a product or service based on the collective “unspoken” needs of clients, the firm said.
Cerulli predicts client data will be integrated into the product manufacturing process.
“The disruptors of the future will take on a very different nature by offering products and services before customers realise their need for them,” said Shu Mei Chua, associate director.
There have been a few digital trends in the Asian markets.
Online fund supermarkets that provide a wide range of products with greater transparency on pricing and services to investors were recently launched in several Asian countries, including Korea and India.
“They were heavily championed by the country’s regulators and fund associations, underscoring a commitment to increase mutual fund penetration,” Cerulli noted.
Other digital trends include robo advisers that eliminate the need to go through traditional banking channels and offer pre-packaged customised portfolios to investors at lower fees than those charged by traditional wealth managers.
Hong Kong-based 8 Securities recently started robo advisory services.
Automated investment services are seeing an increasing demand in the US and the trend is likely to catch on in Asia too, Mathias Helleu, executive chairman of 8 Securities said following the launch of robo advisory services.
In response to increasing needs from clients for digital solutions, UBS Wealth Management recently launched an app that tracks a client’s portfolio, tests it against critical risk factors and sends a notification when the portfolio deviates from the client’s investment strategy.