Will any of the “big tech” companies enter wealth management? That’s been a question that hasn’t gone away in the six years that I’ve covered the wealthtech space.
For many, it’s not a matter of “if,” but “when” and “how.” According to a survey from consulting firm Capco, 92% of wealth management professionals agree that companies like Amazon, Apple, Google and Facebook will try to disrupt the industry.
The thing is, they’re already here, albeit somewhat indirectly. Apple’s credit card is powered by Goldman Sachs, which has rapidly growing its consumer wealth business, and it wouldn’t take a major lift to add some financial planning component to the accompanying iPhone app. And speaking of Goldman, the bank recently announced a new suite of cloud-based data and analytics tools for financial institutions that will be powered by Amazon Web Services. AIG and Nasdaq also announced plans to migrate over to Jeff Bezos’ cloud computing business.
This week also showed the potential downside of trusting our finances to big tech. AWS went down on Tuesday, bringing down many popular websites and services. It’s unclear how any financial institutions were impacted, if at all, but it served as a reminder of the still-present dangers of the technology frontier.
No, Apple and Amazon are not literally offering financial advice or opening brokerages. But these companies are already touching the wealth industry, and if the past 20 years have showed us anything, it’s that they won’t stop there.
Do you think big tech will enter the world of wealth management and financial planning? What will it look like if they do? Would love to hear what you think. |  | Ryan Neal
Technology Editor, Financial Planning
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