Financial Mail - Investors Monthly
Top trends in the tech and platform space:
Firstly, let’s imagine the clients of the future. There are the tech-savvy, DIY-favouring millennials and Gen Z on the one hand. On the other, we have an aging population challenged by longevity risk – potentially outliving their savings. If we’re living to 100 – maybe 200 sometime not that far away – things will need to change. With that in mind, here are some of the innovations we’re seeing in our industry:
1. Robo-advice with a warm body: Currently, Mauldin Economics suggests there are 71 Baby Boomers to every 1 financial adviser. Hence the rise of hybrid models that include face-to-face advice and ‘roboadvice’.
2. People want guarantees: Glacier’s backing by the Sanlam balance sheet means we can offer innovative solutions that also give certainty.
3. Bionic advisers: AI is automating much of the operational side for intermediaries, leaving them more time to build relationships with their clients.
4. Data, data, data: Imagine having tech that tracks your life stage changes to issue alerts, so your intermediary can provide a savvy solution as needed. That’s not that far away.
5. Different goals: Different generations have diverse priorities. For example, millennials gravitate to impact investing, so might invest in funds like our Prescient Living Planet Fund.
6. Active vs passive: In SA, active investing still outperforms passive, but in the UK and US, passive is outperforming active. Technology should bring down costs.