By GIFT NDOLWANE
JOHANNESBURG – A BANKING expert is advising financial managers not to feel threatened by the advent and rapid growth of fintech, as financial technology is known in the sector.
Instead, the advisers must make the most of the speedy growth of such technologies, says Eric Enslin, Chief Executive Officer of the FNB Private Wealth and RMB Private Bank.
“The rapid growth of fintech should not be seen as a threat to advisors, but rather an opportunity to tap into innovation through the use of tools, analytics and technology to better understand and efficiently cater for the dynamic and ever changing needs of high-net worth individuals,” Enslin.
Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century. Originally, the term applied to technology applied to the back-end of established consumer and trade financial institutions.
Meanwhile, Enslin has identified four industry trends affecting high-net worth individuals that advisors should take into account when reviewing long term wealth strategies.
Besides fintech, other trends are life expectancy, local and global legislation as well as economic uncertainty.
The current challenges facing South Africa and possibilities of a sovereign credit rating downgrade in 2017 is growing concern among high-net worth individuals.
This is likely to increase the prospect of investors looking for more exposure to offshore investments as means to diversify their wealth.
“There will be increased pressure on advisors to offer sound advice taking into account the diverse risks and opportunities of investing offshore,” says Enslin.
– Guardian