Wealth managers in the MENA region are expecting strong growth in the number of robo advisers and digital only wealth managers, new research for behavioural finance experts Oxford Risk shows.
Its study with independent financial advisers and wealth managers in MENA who collectively manage assets of around $290 billion, found one in three (34%) expect the number of digital only solutions to increase dramatically by 2025.
Another 45% expect a slight increase in the number of robo advice and digital only solutions while 21% expect no change, the research with wealth managers in the United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Oman, Egypt, and Kuwait found.
The forecasts of expansion build on the impact of the COVID-19 pandemic in terms of on the adoption of technology across the region with lockdowns and restrictions forcing companies to find new ways of working.
More than two out of three (68%) of wealth managers questioned said the pandemic has accelerated the technology revolution in the MENA wealth management sector. However, one in eight (12%) disagree that the pandemic has had an effect.
Oxford Risk is urging wealth advisers in the region to make more use of technology to provide improved services to clients based around understanding their needs through detailed profiling.