Financial technologies have a massive impact on investment advisory, but nobody can estimate, how technologies will shape the industry in the long term. The Zurich University of Applied Sciences and the Zurich Banking Association have developed possible development scenarios and published first results of their study on finews.ch.
In the worst case, the banking industry is disrupted and financial services including investment advisory are offered entirely digital. In this scenario, established banks lose a significant proportion of their market share to non-industry, often foreign-based, companies. In a live voting during the presentation of the study’s results, 24.6 percent believed that this is the most realistic scenario.
The second scenario is less disruptive for the Swiss banking industry. In this encouraging situation, ZHAW and the Zurich Banking Association expect banks to be able to cope with the change and both, value creation and employment, remain in Switzerland. Most participants (41.9%) in the live voting believe this scenario to occur.
In a third scenario, the banking industry fails to adapt to the changed environment and its new requirements. In this fatal case, conservative forces are slowing down or preventing the implementation of necessary changes to keep up with FinTech companies. 11.7 percent believe this scenario to occur.
The last scenario assumes that customers will continue to value the competence of their financial advisors and will prefer personal contact despite financial technologies at least to some extent. In this hopeful case, financial institutions remain to provide a valuable service to investors. 21.8 percent of live voters believe this to be a realistic scenario.