Ortec Finance: Growing focus on technology to address challenges

17 september 2024

Technologie

The global wealth management sector is increasing its investment in technology to address a growing range of issues, according to new global research from Ortec Finance.

Its study in the UK, Canada, Italy, the Netherlands, Germany and Switzerland among wealth managers, portfolio managers, financial advisors and financial planners found they are predicting strong growth in technology investment across a range of business areas.

The study found around three out of four (74%) questioned said they expect to increase investment in technology to help address regulatory demands with 35% expecting a dramatic increase over the next three years.

Almost all (94%) of the wealth managers and financial advisors whose organizations collectively manage approximately £1.207 trillion questioned agreed that the wealth and portfolio management industry needs to invest heavily in new technology and systems to help improve their understanding of the ESG and climate risk factors posed to the investment portfolios of their clients, as well as to funds and stocks in general.

More than eight in ten (84%) say their company will increase how much they invest over the next three years in solutions to help advisors with good estimates of key asset classes’ future performance.

Around half (46%) say investment in technology is improving efficiency while 29% say technology is enabling them to provide more client-centric service.