As the economic climate remains precarious, technology for optimizing client portfolios can provide advisors with an edge as they try to help their customers build wealth.
JPMorgan Private Bank just made a strategic investment in Swiss software firms Edgelab and Evooq – which specialize in risk analytics, portfolio construction, advisory platforms, and workflow – as it seeks to strengthen its digital investment capabilities for wealthy clients.
JPMorgan has already been using the firms’ technology to deliver “personalized planning” to its clients and its investment comes at a key moment: As the market becomes particularly challenging to navigate, systems that can flag risks and opportunities that a human may otherwise miss are crucial.
The Private Bank has been acquiring and investing in companies in recent years to anticipate “the technology needs of our clients 5-10 years down the road,” a spokesperson tells Insights Distilled, including buying OpenInvest and Global Shares, and investing in Kraft Analytics Group, and MioTech. “These companies will enable us to deliver the next generation of digital, personalized, and ESG solutions to our clients.”
JPMorgan’s move also aligns with a larger industry trend towards a “true hybrid advice model” of wealth management, which combines algorithmically suggested portfolio changes with human advice.