UBS looking to deploy fintech to reach mass affluent

Firm isn't alone in its quest to move down market through technology.
OCT 31, 2019
Like many firms, UBS Global Wealth Management is looking to improve its digital financial planning capabilities, eliminate paper, and make it easier for more investors to access financial advice, the firm's technology executives said on Wednesday "Wealth management quite often feels like something only wealthy people have access to," said Kraleigh Woodford, head of digital client experience at UBS Global Wealth Management. "We need to start looking at tools that help bring wealth management to segments that are maybe underserved today." [More: UBS eliminating SMA management fees] UBS sees the mass affluent segment as an opportunity for the firm and is considering how to rollout things like financial wellness, said Ms. Woodford, speaking after a UBS competition between financial technology startups. Though she couldn't provide details, she said technology could be used to help people feel more secure with their financial situation. "We are hearing loud and clear that this idea of wellness is tied to emotion, and the fact that a lot of what's out there today paints a picture that what [investors are] doing is wrong," Ms. Woodford said. Instead of reprimanding investors for not saving enough, she wants a tool that reinforces good behaviors and educates clients on important values for building wealth. Competing firms also are looking to expand wealth management services to the mass affluent. Goldman Sachs has its Marcus program while Bank of America Merrill Lynch has expanded into the digital wealth market with Guided Investing. [More: What does a Goldman-owned United Capital mean for advisers?] To differentiate itself, UBS plans to use technology to understand clients better and serve them more holistically, according to Kate Newcomb, UBS Global Wealth Management Americas' operating head. "There's nothing more personal than money, so when you start to have these types of conversations … it really allows us to have our adviser be front and center and be one of the important people for our clients," Ms. Newcomb said. [Register today for our Future of Financial Advice event on Nov. 20.] Marielle Schurig, a private wealth manager at UBS Global Wealth Management, said individual advisers also play a role by cultivating the relationships with investors. "Clients choose the adviser," Ms. Schurig said. "It's usually up to our firm to support, but it's really for the advisory teams to differentiate themselves." Ms. Schurig would like technology improvements that make it easier for her clients to engage with the firm, especially digital document management and an e-signature system like DocuSign. Beyond new technology, UBS, like the rest of the advice industry, wants to improve adoption of its technology among advisers. For Jeanne Andreana, UBS Global Wealth Management' head of digital strategy and platform, that means improving the user experience for both advisers and clients. [Recommended video: Next generation clients want advisers to help them live better lives] Ms. Newcomb echoed that comment, adding that UBS in the past hasn't done a good job in driving tech adoption among advisers. "The worst thing I hear when I'm out in the branches is financial advisers saying, 'I didn't know we could do that,'" Ms. Newcomb said, adding she would like to support advisers to better leverage the technology already at their fingertips. When asked about UBS' partnership with SigFig, which reportedly laid off 10% of its workforce last week, Ms. Woodford said the partnership was a learning experience for the firm in how to engage with a startup technology firm. It's "pleased with the results" that the firm is seeing from its digital advice products, she said.

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