Ever wondered about the promises and pitfalls of online solutions that aim to enhance your wealth-management process?
Over 130 individuals which included ITC research and MA students and alumni members were interested in this topic and participated in an ITC organised online seminar on WealthTech (WT) to understand its impact on consumer welfare and the financial markets. Prof. Haitian Lu, Director of the Chinese Mainland Affairs Office and Professor of Law and Finance of the Faculty of Business, PolyU, presented his latest research on WT in “The Promises and Pitfalls of WealthTech: Evidence from Online Marketplace Lending” on 17 October. For decades, the wealth management industry has retained its status quo, charging high fees to provide advice to a small group of high-net-worth clients. The rise of WT, or use of digital solutions, has changed this landscape. WT promises to "democratize financial services" by serving the underserved market segments with affordable, accessible, instant, and seamless wealth management services. Critics, on the other hand, argue that people design, model and market WT algorithms, so it would be naïve to assume that all WTs are well-designed with competency and integrity.
