As part of this partnership, InvestGB will implement Avaloq’s advanced platform, hosted on the cloud, which will transform the company’s core wealth management system. This platform will consolidate all of InvestGB’s systems and data into a unified infrastructure, enabling better service for both InvestGB’s and Gulf Bank’s clients. With the integration of Avaloq’s cutting-edge adaptor technology and Community APIs, InvestGB will seamlessly integrate third-party services and applications, enhancing the company’s growth potential.

Avaloq brings an array of enhanced benefits for InvestGB’s clients, including intuitive visualization of investment portfolios, greater transparency around fees, advanced self-service features and the latest in authentication standards for secure access. Avaloq’s flexible customization options will allow InvestGB to provide a user interface tailored specifically to both private and corporate banking clients, featuring custom dashboards and functionality designed for ease of use.

Avaloq’s platform will enable InvestGB to automate and standardize processes across front, middle, and back-office operations. With dedicated modules for investment advisory, fund administration, portfolio management, and corporate actions, InvestGB will streamline its services for greater efficiency. The platform’s built-in automation will also enhance accuracy and straight-through processing (STP) capabilities, leading to improved operational efficiency.

Furthermore, InvestGB’s regulatory and compliance checks, including robust Know Your Client (KYC) processes, will be fully integrated into the platform, reinforcing the company’s risk management framework.

Relationship managers will benefit from Avaloq’s RM Workplace solution, which consolidates client data into a single view. This solution will automate tasks such as client onboarding, portfolio rebalancing, and investment proposal creation, allowing relationship managers to focus on personalized client communication and advice.

Hani AlAwadhi, chief executive officer at InvestGB, stated: “Our partnership with Avaloq demonstrates our unwavering commitment to innovation and delivering long-term value for our clients. By leveraging Avaloq’s cutting-edge technology, we are advancing the digital transformation of our wealth management services, driving growth through innovation, and positioning ourselves to better serve the evolving needs of high-net-worth individuals and corporate clients.”

Akash Anand, regional director and head of the Middle East and Africa at Avaloq, added: “We are honoured to welcome InvestGB as our first client in Kuwait. This partnership highlights Avaloq’s deep expertise and commitment to delivering exceptional value in the wealth management industry. We look forward to supporting InvestGB in transforming the region’s private banking and wealth management sector.”

Countries in Asia Pacific also share two demographic factors that impact the services provided by wealth managers: generational wealth transfer and a large expatriate population.

In order to thrive, wealth managers need to look beyond meeting the current needs of investors and focus on building long-term investment plans, brand familiarity and trust to win and retain the next generation of investors.

Additionally, the wealth management needs of Asia Pacific’s expat population should not be overlooked. Many prefer working with a financial institution they are familiar with. They want quick, simple access to their assets while working overseas and to receive the same client experience across locations. It is therefore important for regional wealth management firms to create a seamless client experience for clients who work in different locations. This will become all the more important, as younger investors are more likely to explore work opportunities abroad.

Preparing for the next gen

Markets in Asia Pacific are also experiencing sustained economic growth and rising household incomes, resulting in a larger middle class and a pool of newly mass-affluent investors. Private banks and wealth management firms need to act quickly to support the wealth creation taking place in Asia Pacific.

It is also vital that they properly guide and advise new investors to build loyalty and trust at an early stage, especially since some of these mass-affluent investors may be the ultra-high net worth investors (UHNW) of tomorrow.

The new generation of investors want to receive the same quality in wealth management services as their (U)HNW peers in terms of advice, performance and personalisation. There will be visible differences, and this is mostly due to the fact that these younger generations often have different expectations from their parents, including a greater preference for digital technologies as well as a more hands-off approach that may even favour discretionary portfolio management, especially in China and Hong Kong.

The need to attract long-term loyalty

From a wider Asia Pacific perspective, serving this growing pool of investors at scale can put a lot of strain on relationship managers and advisers. Given the current talent shortage in the industry, with relationship managers having to oversee an increasingly large number of clients, there are still major challenges ahead for the region’s wealth managers.

Technology will play a vital role in ensuring that wealth managers can offer investors a wide range of investment services and a smooth onboarding experience. On top of that, integrating artificial intelligence solutions, such as virtual assistant technology and generative AI, to support relationship managers is what will make a difference in client loyalty.

In addition, the cloud is a key enabler of digital transformation in the finance sector. It enables wealth managers to roll out new services more quickly, increase cost efficiency through flexible pricing models, and rapidly expand into new markets. For frontend applications such as web and mobile banking, cloud technology is essential to ensure constant availability across devices. This is a demand that we see globally – not just in Asia Pacific.

An optimistic outlook

While we are optimistic about the outlook for the wealth management sector in the APAC region, there are still challenges to overcome. For countries such as Japan, where there is an ingrained conservative approach to investing, wealth managers can still encounter resistance when it comes to shifting potential clients to managed investment solutions and gaining their trust.

However, from a broader perspective, wealth managers can leverage digitalisation and improve operational efficiency, which will ultimately help them to reach and server a greater number of clients while providing a more holistic and personalized wealth management offering.

This article was written for International Adviser by Pascal Wengi managing director for Asia Pacific, the Middle East and Africa at Avaloq.

The research revealed that 73% of the 500 UK investors surveyed would use AI for their portfolio’s performance data.

As 71% say they are comfortable using AI to provide product recommendations, a 8% rise since 2022.

However, over half (56%) of investor’s still favour a blended approach incorporating AI and humans, whilst 16% prefer a fully driven AI approach.

To read more on this, visit: https://ia-live.onyx-sites.io/should-advisers-see-ai-as-a-threat-to-their-business/

Further, Avaloq surveyed 2,500 investors from five markets in Europe and Asia.

Findings suggest that these markets are more receptive than those in the UK, with 74% willing to use AI for some or all financial tasks compared to 69% of UK investors.

These results come as the UK hosts the AI Safety Summit, bringing nations together to discuss the risks of AI and how they can be mitigated.

Head of data science at Avaloq, Gery Zollinger, said:“Our research reveals that investors are more open to using AI in the investment process but still want the human touch, indicating natural opportunities for wealth managers to integrate AI into their offerings in a way that augments the service they provide.”

61% of respondents in Hong Kong stated that they currently invest via DPM, compared to 53% in Singapore and only 22% in Japan.

The study also revealed that nearly half (49%) of Hong Kong investors take a very or fairly aggressive approach to risk, an 11% rise from 2022.

To read more on this topic, visit: Should advice firms in Hong Kong and Singapore adopt a fee-based model?

In contrast, only 29% of investors describe their investment approach as very or fairly conservative.

Further, the survey revealed that over half (57%) of Hong Kong investors said additional income was their top investment motivation.

Followed closely was future personal healthcare costs (44%), to fund their property purchases (41%) and entrepreneurial activities (40%).

Managing director for Asia Pacific, the Middle East and Africa (AMEA) at Avaloq Pascal Wengi, said: “Hong Kong investors are a relatively sophisticated and discerning group in Asia, demanding higher levels of personalisation, digital-first solutions and comprehensive advice amid challenging market conditions.

“Private banks and wealth managers need to elevate their offerings in order to retain their clients and attract new ones in the face of rising competition.”

Some 53% of investors surveyed said they consult industry professionals when making investment decisions, a 9% increase from last year.

The research also highlighted that professionals such as advisers are the go-to source for investment advice followed by news articles at 46%.

Avaloq attributed this increase for professional expertise to the financial uncertainty of the past year.

As well as surveyors citing additional income (50%) and retirement planning (43%) as factors driving them to invest.

The research also showed that investors’ risk appetite is increasing with 27% describing their investment approach as aggressive, a 7% increase from 2022.

Martine Greweldinger co-chief executive officer of Avaloq, said: “Investors’ motivations have changed and their desire for income, as well as their increased appetite for risk, are reflections of the new realities of risk and return profiles in this volatile economic environment. It is no surprise that investors are now increasingly seeking out financial advisers to deliver consistent and steady investment returns.

“As investor reliance on industry professionals increases, wealth managers and financial advisers have excellent opportunities to demonstrate their value. To remain competitive and ensure their products keep up with the changing preferences of clients, they must invest in technology that not only gives investors a seamless user experience, but enables managers to anticipate client needs and offer tailored investment solutions.”