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Do Wealth Managers Need A Strategy For Digital Assets? – Wealth Tech Digest #21

Key takeaways

✅ Do Wealth Managers Need A Strategy For Digital Assets?

We start today with an article on digital assets from writer Michael Spellacy. He says that the average wealth manager doesn’t have a clear strategy for digital assets, and that needs to change very quickly. Spellacy reports that nearly four in five wealth managers in Europe and Asia said last year that they have no plans to significantly change their traditional business models to capitalize on emerging technologies. But incredible opportunities may exist for wealth managers in non-bankable assets. This asset type includes private assets like real estate, art, and passion assets – representing a nearly $78 trillion dollar growth opportunity. And blockchain, Spellacy argues, could change the game by bringing these assets into the bankable environment. Blockchain provides a mechanism for the valuation, storage, authenticity, and calibration of these previously non-bankable assets. And Spellacy believes the market for these assets is poised to explode, even though only a small number of advisors want to incorporate digital assets into their practices. Just 9.4 percent are allocating part of client portfolios to crypto in 2021, up from 6.3 percent last year.

According to Spellacy, the real issue here is the lack of infrastructure in place to help financial planners give advice on digital assets. Capturing opportunities from digital assets and ensuring a high level of client engagement means investing in talent AND technology. And Spellacy recommends starting with digital wallets that allow clients to do more than just invest in crypto products. Clients should be able to easily purchase and store Ethereum, invest in user-friendly NFT platforms, and find the educational information they need to learn about digital currencies.

✅ European B2B Wealthtech AllFunds Set To List On Euronext Amsterdam Stock Exchange

Next we take a look at B2B Wealthtech solution provider, AllFunds. The AllFunds platform covers the complete fund distribution value chain and all of the related investment cycles. The ecosystem also includes the firm’s new mobile app, AllFunds Connect. And according to writer Omar Faridi, AllFunds will soon be listed on the Euronext Amsterdam stock exchange. Listing won’t provide AllFunds with any proceeds, but the firm hopes that the move will offer access to diversified sources of financing and enhance brand awareness. Juan Alcaraz is the founder and CEO of AllFunds. He says that listing will provide the firm with the flexibility to accelerate the digital transformation of the wealth management industry and the growth of their best-in-class global platform. The firm reports more than 1.2 trillion euros of assets under administration as of last December. And this year AllFunds has reported a growth rate of 13 percent during the last three months.

✅ WealthTech Market Updates

And our final article today comes from the KSU Sentinel Newspaper that reports the WealthTech Market is continuing to see strong growth in investment. Investors continue to back new digital services to manage personal finances, open online bank accounts, and invest money with low fees. Total funding in the market grew at an overall compound annual growth rate of 40 percent to reach $7.8 billion dollars at the end of last year. And 2020 also saw more than $3.1 billion dollars invested in funding rounds under $75 million dollars as wealthtech spread and new startups entered the market.

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