PIMFA, the trade association for the wealth management, investment services and the investment and financial advice industry, is pleased to announce the launch of PIMFA WealthTech.

PIMFA WealthTech has been created as a next generation digital marketplace and industry network to drive innovation and enhance collaboration between WealthTechs and wealth management and advice companies, fulfilling one of the key objectives set out in PIMFA’s manifesto to enable digital business transformation through the development and adoption of market-leading technology.

The platform has been developed in response to several drivers of digital transformation, including the impact of the Covid-19 pandemic on advice models, shifting demographics and market and legislative changes. All of these are reshaping business and operating models and accelerating the need for wealth management and advice firms to focus on the use of technology-based solutions and new digital architecture to enhance the products and services they offer.

The opportunities for WealthTechs to work with wealth management and advice firms are vast, with the industry recognising the need to offer enhanced customer engagement and relationship management. Many wealth management and advice firms are also acknowledging that their future success and ability to operate at pace and scale, will depend on better use of customer data and technology such as Artificial Intelligence (AI), Blockchain, Cloud-based Infrastructure and Social & Mobile technologies, in real-time to deliver more relevant content, products and services.

PIMFA WealthTech will act as a primary source for market intelligence and insights on the latest technologies and trends impacting the industry, providing fast-track market research, expert forums and Tech Sprints. Through structured Tech Sprints (1) PIMFA WealthTech will examine industry pressure points to deliver tech-based solutions to wealth management and advice firms keen to digitise many of their back-office operations or enhance front-office services for their clients.

PIMFA WealthTech will draw on the expertise and resources of digital service providers and is working with Morningstar as its principal strategic partner to support this industry-wide digital transformation.

The platform will focus on key issues impacting the sector from how tech is being applied across the industry, to customer acquisition and onboarding, product structuring and development, investment management and execution, portfolio management, account administration and after sales client reporting and servicing.

The new initiative will also address the role of technology in supporting industry trends such as the growth in Environmental, Social and Governance (ESG) investments and the emergence of Open Wealth.

A practitioner-led Advisory Board, comprising of leading wealth management and financial advisory companies to be announced shortly, will help shape the new initiative and determine priority areas that will make a positive change for the industry.

Liz Field, Chief Executive of PIMFA, commented: “The way in which wealth management and advice firms engage with their customers, the amount of data required to serve those customers, and the challenges of operating in an increasingly digitised environment mean that all firms recognise the need to enhance their proposition through better technology. Digital transformation and technology was reconfirmed as a key strategic priority with our Board and Advisory Council at its February meeting.”

“Enhancing existing technology is a challenge as well as identifying the right solutions to enhance existing capabilities and some firms find starting the process daunting, being unsure of what technology they need or which providers to speak to. PIMFA WealthTech will help solve many of these problems and I’m delighted that PIMFA, with the support of Morningstar, is able to offer a platform for WealthTechs and wealth management and advice firms to come together to collaborate and work effectively, to enhance the products and services our industry has to offer our clients and ensure our place as a world-leading wealth management sector.”

Anastasia Georgiou, Head of Adviser Solutions, EMEA at Morningstar, commented: “As a fintech company, Morningstar is excited to support the PIMFA WealthTech Platform. Digital transformation and innovation put the customer centre stage. In a world where we have a proliferation of data, changing consumer preferences, the growth of sustainable investing, and increased regulation, wealth firms need support – the PIMFA WealthTech Platform is a hugely important initiative doing just that.”