29 Apr 2019
Growing in Omni-channel Investing: Sasfin Wealth launches SWIP
By: Cobus du Preez, Head: Digital Solutions, Sasfin Wealth
The world of financial advice is undergoing rapid change. Globally, progress in analytics and artificial intelligence have contributed to the rise of digital advisors (also known as robo advisors). Assets under management in this segment amounted to $330 billion in 2018, with AUM expected to grow to nearly $4 trillion by 2022. Against this backdrop is also an expected wealth transfer of nearly $30 trillion from baby boomers to millennials over the coming decades, which will intensify the need for investment solutions and financial advice that caters to a tech-savvy generation.
Adapting to generational needs
Client expectations of their wealth managers are changing, with digital channels being a good case in point. A global study by EY concluded that majority (59%) of wealth clients state that digital will be their preferred channel for receiving advice in the coming years. Most clients are also familiar with robo-advice offerings. Not surprisingly, younger generations are more likely to consider robo-offerings than older age groups, with 61% of clients aged between 18 and 34 likely to consider robo-advisors, compared with 51% aged between 35 and 50 or 24% aged between 51 and 71.
The South African market lags international trends but it is evident that clients’ need are evolving globally.
It is therefore important for us to build our organisational capability to anticipate and respond to market shifts faster than our competitors. Despite this, we believe that digital advice cannot compete with the human aspect of having a meaningful conversation with a client. Sasfin is built on meaningful relationships, which will always be a key differentiator. However, this does not mean that we should ignore technology and how it will improve our business and our clients’ experience.
Introducing the Sasfin Wealth Investment Platform (SWIP)
Technology provides the tools to scale our practices and to reach more clients across broader segments in the way they prefer to be reached. Clients across the generational spectrum want to access services via their channels of choice, or combinations thereof. A key part of the solution to address these needs for Sasfin Wealth and our clients is the recent launch of the Sasfin Wealth Investment Platform (SWIP).
SWIP is a wholly owned subsidiary of Sasfin Wealth (Pty) Ltd and is a technology driven solution with online retirement savings and investment portfolio tools, calculators and products for direct retail clients, third party IFAs and asset managers. The technology enables our advisors to generate quotes and application forms electronically, and allows them to on-board clients electronically, resulting in a time saving, cost-efficient, improved client experience. External advisors and boutique asset managers can use the platform as a white label product for their clients, or to white label their own solutions.
Direct clients can access retirement and voluntary investment solutions via the SWIP page on the Sasfin website. Here clients can access the Retirement Calculator or Financial Needs Analysis tool to help them determine how much they need to invest for retirement, or to achieve an investment goal. Clients can follow an electronic on-boarding process, with digital signature technology if they prefer to do so. SWIP is also supported by a dedicated client service team who is available to assist clients telephonically, via live-chat or via email.
SWIP’s voluntary savings (after-tax savings) offering is currently limited to ETF portfolios which provide investors with local and international exposure, while the retirement savings (pre-tax savings) offering – via ETF solutions or Multi Asset Class PSP - include:
- Retirement annuities
- Preservation pension fund
- Preservation provident fund
- Living annuities
More product solutions will made available via SWIP in 2019, including model unit trust portfolios, selected direct unit trusts, tax free savings and multi asset class offshore portfolios.
Speak to your Portfolio Manager or Wealth Advisor if you would like to find more about this offering.