What is Digital Wealth Management (DWM)?

What is digital wealth management?

The phrase “digital wealth management” refers to competent financial advisers’ utilization of various digital technologies to create unified client experiences across all user devices and platforms. These tools promote collaboration, increase involvement and transparency, and aid in the development of financial asset performance.

What are some of the financial benefits to using digital wealth management?

Self-service and automation. If a client has a simple question concerning their account, he or she prefers to receive a prompt response by phone or the Internet. Digital chatbots are one effective means of achieving this objective.

Portfolio recommendations. Wealth managers can use digital technology such as machine learning to analyze client portfolios and recommend appropriate alterations to meet predetermined objectives.

There is access to external data. New digital platforms based on open standards facilitate and accelerate the integration of existing applications with third-party data sources. This enables clients of wealth management with more insight into their investments.

What is private wealth management?

Private wealth management is the professional management of assets and investments for high-net-worth individuals. Private wealth managers provide financial planning, asset allocation, portfolio management, and estate planning services to their clients.

Should digital wealth management replace a wealth management advisor?

Absolutely not. You should work with a wealth management advisor AND leverage digital wealth management tools in order to keep an eye on your finances. Most high-net-worth individuals want face to face interactions when it comes to their money for the following reasons:

  • They appreciate human advice based on experience as opposed to a computer generated algorithm that does not consider factors such as emotion and someone’s willingness to actually implement a recommendation.
  • Digital wealth management has a hard time communicating complex financial concepts to someone in a simple manner that they can understand, and therefore be more likely to embrace.