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Digital advice increasingly popular for HNWs

Digital advice increasingly popular for HNWs

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By elaina ·
January 12 2017

Digital advice increasingly popular for HNWs

Robo-advice is becoming an increasingly popular tool among high-net-worth individuals as the range of services offered continues to increase, according to Finovate.

Digital advice increasingly popular for HNWs
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The "myriad" financial needs facing Millennials, coupled with increasing longevity risk confronting older investors, have driven change in the robo-advice space, with the improving abilities of such services now extending beyond "traditional boundaries", Finovate research analyst David Penn says.

"The growing capacity of robo-advisers to help manage other aspects of personal finance supports a more expansive view of wealth management and financial planning," Mr Penn said.

"This includes everything from healthcare planning, insurance, even real estate, education and leisure."

As robo-advice becomes "both more sophisticated and more accepted", wealthy investors are increasingly making use of these services to manage parts of their finances, Mr Penn said.

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"Catering to high-net-worth clients, according to some, involves both greater technological sophistication on the part of robo-advisers, as well as more extensive customer service," he said.

"Specifically, high-net-worth clients may require access to more complex investment vehicles, including non-equity investments, as well as more advanced rebalancing and tax harvesting than the average investor."

Fintech services designed to help high-net-worth individuals manage their wealth are emerging in the market, Mr Penn said, adding that high-net-worth individuals already using these services increased their investment from 5 per cent to 20 per cent in the last two years.

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