The industry has “no choice” but to keep evolving, adapting and developing its technology or it may become “obsolete”, according to Amer Malik, head of middle east international at Lombard Odier.
Speaking to FT Adviser, Malik discussed how technology can be harnessed to engage with the next generation, as well as the increasing number of young expats entering the UAE.
He said: “I was reading some research recently which said up to 86 per cent of the next generation, when intergenerational wealth transfer takes place, end up changing the adviser of their parents, they just can't relate to them anymore.
“This is a threat as well as an opportunity for banks like us. What do we need to do to ensure that a larger percentage of the next generation stays with us?
"The answer for me is technology, you need to use the data to make the whole conversation a lot more interactive. If we continue building on tools to engage with the next generation better, then that's where technology is going to play a big role.
“If we do not adapt, we will become obsolete, we have no choice but to continue investing in, adapting and developing our technology.”
Malik highlighted the need for firms to “gravitate towards the future” when it came to technology but believed a human touch will always be necessary when talking to clients, regardless of any changes that technology brings.
“I do not believe that bankers and wealth managers will be replaced by robots. That personal touch will remain at the heart of private banking and the wealth industry.
"However, what we need to do is ensure that we invest enough in technology so that it can actually augment our jobs and support our investment process and make it more interactive.
“A lot more has to be done so the next generation of clients can look at things we provide them from their phone. This is so they can interact with it and can slice and dice the data and our roles will change to add to that experience. But that does not mean me or an adviser will be out of a job” he added.
Malik discussed how clients involve their children in conversations with Lombard Odier at a young age to educate them.
He explained: “We actually have programmes which cater exactly to educating the younger generation. But we also have training programmes for families and spouses, not just children. So we start at a young age to begin educating them not just about investments but offering them more holistic advice about finance.”
Young demographic entering the region
Malik highlighted the fact that the demographic of people living in the UAE is changing with a lot more young people moving there, who despite the stereotypes, are very engaged with their finances.
He said: “We are seeing, especially here in the UAE and especially Dubai, a lot of young millionaires in their 20s. Dubai has a vision to make the city a knowledge based society to be able to attract young talent from all over the world.
