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Intelligent wealth management goes one step further than digital KYC assessments by leveraging artificial intelligence, big data and machine learning to provide investors with smart, professional, and customised financial services. The goal is to alleviate the pain points of both traditional, and digital wealth management services as research shows 70% of investors prefer online wealth management services.

To assess the industry’s state of play, our parent company Lufax, teamed up with iResearch, a professional market research and consulting company, to investigate the needs and opinions of investors, identify untapped potential and offers a snapshot of the sectors future developments. These findings are critical for LU Global as we continue to find ways to enhance our investment app in order to better serve investors.

In a press release by Lufax they highlight that the focus of the study is the imbalance between the supply and demand of existing investment advisory services and the impact of investors cognitive biases and lack of knowledge and diversification. The main concern is the variability, reliability and high potential for conflict of interest across traditional wealth management services.

But the investigation also sheds light on the pitfalls of existing digital solutions which are broken down into three distinct eras, 1.0, 2.0 and 3.0. 90% of investors are not satisfied with the current state of intelligent wealth management and it’s clear from their responses that these digitals era’s have not yet fulfilled the goal of replacing human operators. There are several features that intelligent wealth management, era 4.0, needs to address to better service investors.

So, is the transition to intelligent wealth management, era 4.0 very far behind? And what does it mean for investors? The whitepaper shows that in era 4.0 investors can look forward to more human-like communication experiences, precision matching and risk mismatch alerts and advanced systematic investor education.