The number of wealth management robo-advisers is on the rise across the Middle East and North Africa, according to new research from Oxford Risk.
One in three (34 percent) expect the number of digital only solutions to increase dramatically by 2025.
“The increased use of technology is transforming businesses around the world and is clearly having a major impact in the MENA region,” Greg B Davies, PhD, head of behavioural finance, Oxford Risk, said. “The rise of digital only solutions is to be expected as the technology revolution speeds up in the MENA wealth management sector. There are major benefits for wealth managers and clients from increasing their use of technology and algorithms.”
Forty-five percent expect a slight increase in the number of robo advice and digital only solutions while 21 percent 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 percent) of wealth managers questioned said the pandemic has accelerated the technology revolution in the MENA wealth management sector. However, one in eight (12 percent) disagree that the pandemic has had an effect.
Source: https://www.itp.net/solutions/robo-advisers-are-increasingly-managing-wealth-in-the-mena