Digital technologies are being used by wealth managers to mitigate the challenges of the pandemic and data security, and to improve client servicing and customer engagement, according to research.

Mobile-focused digital transformation firm Mobiquity commissioned research among 100 wealth managers in the UK, and found that over three-quarters (79 per cent) said digital technologies had improved customer engagement strategy, and their experiences with clients (81 per cent).

Over half (56 per cent) reported increased client demand for digital products and services due to COVID-19.

Almost half (47 per cent) are using a client wealth management dashboard on a mobile portal, over a third (36 per cent) are using video conferencing and almost a third (32 per cent) are using Open Banking.

About a quarter (24 per cent) are using conversational chatbot AI (artificial intelligence).

But barriers to “WealthTech” remain, said Mobiquity.

Almost a quarter (23 per cent) said they do not have plans to adopt technology in the future.

The main barriers include privacy concerns (35 per cent); risk and compliance (32 per cent); technical issues, like software crashing and internet connectivity problems (31 per cent); and technology implementation taking too long (31 per cent).

Matthew Williamson, vice president of global financial services at Mobiquity, said: “The wealth management landscape has been ripe for digital disruption for some time. The sector has seen a big shift, driven by changing client expectations, demographic changes, regulatory pressures and increased competition.

“While challenges still exist in implementing digital technologies, the benefits outweigh the barriers.”

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