Amazon, Alibaba and other global tech giants are expected to enter the wealth management sector in the coming years, posing “a serious threat” to established advisory companies and offering bespoke new services to investors, a report has found.
The wealth market will recover successfully from the Covid-19 pandemic, with the world’s stock of personal financial assets returning to 2019 levels as soon as next year, Boston Consulting Group predicted in the consultancy’s widely followed annual Wealth Report. While the rebound may be sluggish in North America, Europe and, especially, Japan, it will be strong in the rest of Asia, with economic growth powering the expansion of the wealth held by the region’s business families, professionals and others.
BCG said big tech groups, including Amazon, Google and Microsoft, were already building the digital infrastructure required by wealth managers. Amazon, Alibaba and some others offer financial products. “In time, their financial muscle and scale” could allow them to move up the ladder of financial sophistication and provide wealth management services to the affluent, the report said.
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