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Digital wealth management: tips & tricks

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Digital Asset Management

Digitization is advancing in many areas of life, and exciting innovations are also emerging in the field of asset management that are worth keeping an eye on. But there are still plenty of unanswered questions. Whether legal and technical matters, challenges with regard to the security offered or aspects concerning support.

We give you a comprehensive overview of the dynamic field of digital asset management and clarify the most important points. Because one thing is already certain today. This change is here to stay.

But what exactly is meant by the term digital asset management anyway? We explain and point out the main stumbling blocks.

The most important things at a glance

  • Lower costs, absolute transparency and efficient processes on top – these are just some of the advantages that digital asset management has to offer these days.
  • Although the positive aspects of this form of money management are obvious, and more and more customers are also longing for online solutions, the range of products on offer is not yet all that great.
  • In most cases, however, the reason for this is not the unwillingness on the part of asset managers, but rather the lack of a technical basis. In many places, there is still a lack of the necessary digital infrastructure to be able to offer such solutions at all.
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What is digital asset management?

Incorrectly, asset management and investment advice are often mentioned in the same breath. However, this is not correct. Important differences keep the two types apart, and it’s important to keep them in mind.

  • In the case of investment advice, the advisor provides the customer with assessments and recommendations on investment opportunities. The customer itself makes however at the end the decision whether and which concrete investment is to be transacted and must these also in order give.
  • In contrast to this, however, the asset manager is expressly permitted to make independent decisions on the financial markets on behalf of his client and to execute these decisions by means of corresponding transactions. However, before funds are actually invested, there is first a far-reaching evaluation of the individual situation, which also takes into account the client’s risk-bearing capacity and wishes.

So much for the basics. But what exactly is digital asset management, which has been mentioned more frequently recently? What are its opportunities and advantages? Are there possibly also risks that cannot be ignored? We have listed the essential points for you below.

Online accessibility

You just want to take a look at your portfolio to check the impact of the recent price turbulences on your personal portfolio? But at the same time, you don’t feel like contacting your asset manager first? Now, digitally, that’s no longer a problem. Both the account and all other important processes can be accessed via the Internet without much effort.

Good service

This should be a matter of course, especially in the high-end sector. Nevertheless, this is unfortunately not always the case. Especially because investment is a very sensitive area, expert advice is always welcome. However, anyone who believes that help is only available in person is very much mistaken. Of course, you are not left alone in digital asset management either. The assistance here looks quite simply different. From uncomplicated chats to classic phone calls and video calls, virtually anything is possible.

Uncomplicated decisions

It is clear that one should always coordinate well before making decisions with far-reaching consequences. Thanks to digital asset and wealth management, however, it is possible not to get stuck in deadlocked structures, but to break new and more innovative ground. Today, processes are simply solved online instead of through countless stacks of paper, where the overview is quickly lost.

High functionality

A good digital asset manager is always where you are. Laptop, smartphone or tablet. Diverse digital devices come into question for this purpose. They allow you to have control over your financial matters virtually anytime and anywhere. This also allows you to react quickly in an emergency should there be any important changes. By the way, you should make sure that your digital asset manager does not only work on the desktop.

Modern right from the start

Even the onboarding process runs completely digitally, so that superfluous paperwork can be dispensed with. Once everything important has been set up, professional investing can virtually get underway. Simple, online and, above all, forward-looking.


Digital asset management and banking have long been on the rise

The Corona pandemic revealed in a sometimes painful way the great potential for digitization that has been wasted or insufficiently exploited to date. In the wake of the crisis, however, many companies in Switzerland and around the world switched to online-based means of cooperation. The result was clear. It was also possible to collaborate excellently via digital means without missing out on results.

  • It is already predicted that these changes are here to stay. The financial sector, and asset managers in particular, will therefore also have to present themselves increasingly digitally in the future.
  • If we take a look at the Far East, we see that mobile banking has long played a key role there. The young and, above all, tech-savvy population has obviously understood and internalized the advantages of digital channels.
  • South Korea is a case in point. Here, more than 97% use a smartphone, of which just under 76.5% make use of the advantages of mobile banking. But there are a whole host of other exciting statistics that are worth listing.
  • These include the fact that around a quarter of all customers would like to do without physical bank branches in the future. This was reported by e-commerce magazine in February 2022.
  • It also states that in the course of the global pandemic, just under 17% of German bank customers have come into contact with digital options for the first time. The majority of these newcomers rated the customer experience as positive.
  • With a view to the young generation, which is also often referred to as digital natives, it is already clear that the trend toward digital banking and mobile asset management will intensify significantly in the coming years and decades. Providers who want to survive here should therefore already set the necessary course today.

Are robo-advisors digital asset management?

To begin with, the answer is a resounding yes. However, breaking down the term can cause confusion here.

  • A robo-advisor is not an advisor, as one might expect. Rather, it is a digital asset manager that uses artificial intelligence (hence robo as in robot) to invest money automatically.
  • The way it works is quite simple. After initially answering a few important questions, the robo-advisor compiles a portfolio according to quantitative criteria. Fees and transactions are negligible with this type of investment, averaging one percent or less per year.
  • In return, the investor gets easy access to a diversified investment portfolio. This alternative has proved particularly popular with newcomers to the stock market. Those who prefer personal exchanges will find it rather difficult.

Important elements in digital asset management

What is urgent to pay attention to if you want to rely on digital solutions when it comes to investing? Which features should definitely be present and what makes a really good offer? We have summarized the key points for you.

What does the website look like?

Often, the homepage is considered the first port of call for prospective customers. If it is not immediately convincing, many people feel uneasy – after all, nothing less than their own financial investment is at stake.

In this context, it is important to check whether it is important to have a customer login via the website that allows access to the account and securities account, among other things. Not all providers support this, but offer customer access exclusively via an app. The information content of the website is also relevant. Is there a blog, for example, or are they content with the absolutely necessary data?

Is an app available?

This criterion may not be a necessity. However, a digital asset manager who also provides his clients with an app is a sign of professionalism. Of course, the app must also be able to do something. Above all, you should be able to access the securities account to see any relevant information at any time. Things like deposits or transfers should also be possible via the app.

Is the compatibility convincing?

No matter how beautifully the website is designed, no matter how innovative the app appears. If the tools end up having significant deficits in practice, no one is really helped. You should therefore make sure that the applications are easy to use from home and that you don’t have to call on external help for every step.

What does the service and support have to offer?

Questions arise from time to time. It’s good to have professional help on hand in such a case. With digital asset managers, it is particularly important to be able to communicate with experts via various channels such as chats, e-mails or video calls. So these options should definitely be available. It is also important to ask yourself whether it is okay to talk to a call center or general customer support, or whether you prefer to be able to contact a personal contact person at any time.

What are the general conditions?

Data protection is considered the be-all and end-all, especially when it comes to sensitive topics like money. Accordingly, a trustworthy digital asset manager absolutely ensures that all information is protected against potential hacker attacks in the best possible way. Prospective customers should also consider whether and how well the paperless processing of the service works. Does everything already run online or do many things have to be printed out first?

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Setting the course for the future with digital wealth management

The death of the branch banking network is already in full swing, and is thus visibly affecting traditional asset managers as well. Potentially short distances can no longer be maintained if the local bank of trust closes its doors. With a digital solution, it doesn’t have to come to that.

Here, professional money management is combined with the advantages of flexibility in terms of location and time. Looking at the securities account, checking incoming payments or setting up a new order – everything can be done easily and without any opening hours. And on top of that, it’s environmentally friendly because it saves paper. There is also an enormous advantage that should not be overlooked.

Digitization enables a high degree of efficiency, which means that asset managers can also work in a more targeted and thus more cost-effective manner. This in turn has a direct impact on the minimum capital required. The entry threshold is therefore lowered and digital asset managers become accessible to broader sections of the population.

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