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Rich people would consider Google, Amazon to manage their wealth

Forget traditional wealth management firms. If Google, Apple, Facebook or Amazon offered financial services, more than half of rich people might sign up.

Google Inc. Chromebook laptop computers sit on display in front of a sign featuring the company's logo at the company's Asia-Pacific headquarters during its opening day in Singapore, on Thursday, Nov. 10, 2016. Google officially opened its new hub in Singapore today. Photographer: Ore Huiying/Bloomberg

Consulting firm Capgemini found that 56.2% of high-net-worth individuals would think about working with one of the four technology firms if they offered wealth management services, according to its World Wealth Report 2017. More than 81% of these people under 40 might turn to one of the tech giants. Same goes for 72.5% of those surveyed in the Asia-Pacific region.

The findings come as asset management firms are threatened by online wealth management tools. Capgemini’s study polled more than 2,500 high-net-worth individuals with investable assets of at least $1 million across North America, Latin America, Europe and Asia-Pacific.

Technology companies could use “their agility, their speed to market, their ability to leverage data, to personalize, to drive transparency,” areas where traditional wealth management firms are lacking, said Brian Sullivan, global head of financial services market intelligence at Capgemini. Still, he added, “it’s less likely that Big Tech will be a direct competitor and steal clients away, but you are probably more likely to see some partnerships and collaboration.”

Bloomberg News