Finance Meets Fashion: #Wearables in Wealth Management

by Ashley Globerman, May 12, 2015
EMEA, North America

Abstract

Wearable technology is quickly gaining interest and momentum among consumers and enterprises. Wearables are digital devices that can be worn on the body (i.e., glasses, watches, cameras, clips), can be controlled with minimal manual input, and offer real time access to and the collection of data.

“This data can ultimately be used to influence real world decisions and behavior; wearables have the potential to alter the way we go about our daily lives,” says Ashley Globerman, an analyst with Celent’s Wealth Management practice and author of the report. “Wearables span multiple categories, including, but not limited to health, finance, and lifestyle. Achieving the ‘quantitative self’ has never been easier.”

Wearable technology, particularly in the wealth management industry, is in its infancy, which is not too dissimilar to smartphones and tablets about 10 years ago. Celent estimates that the wearables market will grow at a similar adoption rate as smartphones and tablets, possibly even more quickly. As the functionality and capability of wearables expand, so too will adoption rates among retail investors and wealth managers. Consumers’ expectations have become increasingly complex as a result of the digital revolution both within and outside the financial services industry. Consumer demand for choice, convenience, and customization poses challenges and opportunities to enterprises.

Existing financial apps for wearable devices are mostly focused on PFM/budgeting and banking services; this caters to the millennial and mass affluent customer segments. In this report, Celent explores the role of wearables in wealth management and assesses if wearables have the potential to move beyond the mass affluent and serve the high net worth customers by, for example, integrating with an advisor’s CRM system. Celent provides an overview of the wearables market, examines the drivers for adoption, studies the potential impact of wearables on the retail investor and wealth managers, and concludes with a prospective look at the impact on the wealth management industry.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

2

Market Overview

3

 

Sizing the Market

3

 

Drivers for Adoption: The Three C’s

5

Wearables in Wealth Management

7

 

Advisor Functionality and Benefits

8

 

End User Expectations

10

 

Buyer’s Remorse?

11

Looking Forward

13

Leveraging Celent’s Expertise

14

 

Support for Financial Institutions

14

 

Support for Vendors

14

Related Celent Research

15

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