In light of ageing populations, retirement income strategies for Asia’s wealthy are becoming increasingly vital and could benefit from robo-advisory capabilities, John Robson, Quantifeed’s chief commercial officer, told Asian Private Banker.
According to Robson, as the average retirement duration increases, so does people’s need to save as they are forced to rely less on pension schemes and family members. Wealth managers, therefore, must ensure clients can enjoy retirement income stability by aligning investment portfolios with clients’ post-work life requirements.
“People’s retirement income strategy has to be really aligned with the wealth management service they receive,” said Robson. “Services for the retirement sector is a key initiative for 2019. At Quantifeed, we are developing products that are capable of helping people implement suitable retirement income strategies.”
He added that while banks spend much effort catering to pre-retirement needs, the transition from work to retirement is a “critical point” at which “you need that support of a wealth advisor who’s going to be really able to give you good advice”. “Banks are trying to create this stronger, more meaningful relationship with the customers,” he added. “Being able to help clients during the savings phase of their life is great, but being also able to help them in retirement is equally rewarding, as we strive to help people live better lives financially.”
Marrying its quantitative strategies and its technology platform, the solutions provider looks to simplify the portfolio engineering experience for wealth advisors and end-clients via robo strategies. “Robo advice is about the convenience of access, the ability to provide customers with engaging experience, the transparency of transactions, and to be able to do it at a relatively competitive price,” Robson said. “That’s what most customers are looking for.”
Last month, insurance provider Transamerica Life Bermuda’s CEO told Asian Private Banker that “retirement needs are going to be the next big thing”. And in August, Fidelity International’s China country head said the firm is looking to amplify “investor education and retirement planning on content on digital channels” in collaboration with Ant Financial’s wealth management platform, Ant Fortune.