The Maslow Pyramide of Wealth Management - Fintech and Human Expertise is needed!

Before discussing any other topics, an asset manager must prove that he is able to achieve a good risk adjusted performance over a longer periode. Here technology is crucial but also the power of community. Only when that need is covered the next level can be reached, client/user experience. Here technology is needed but it is only a part. The top of the pyramid is trust, of course technology helps here as well but the human component is significantly stronger. Your thoughts on this?


Absolutely - The importance of man vs machine forms an inverse pyramid, so the two together are complementary.

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Had a good feedback from Adriano Lucatelli on Twitter: “Trust builds the foundation.” And that is true. Only cause quite some breach of trust happens, in the sense that promise that for quite extensive fees estensive value will be added, now financial institutes have to prove first.

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very clear pic that paints a thousand words

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I have to disagree to this simplification. Trust is the foundation.

No client without trust.
Your client may trust in the expensive office furniture, your past employers or friends, clients or business partners you may have. (LTCM and Madoff are good example)
He or she may also probe your integrity and personal core values.

A Asset Manager must prove that he/she can achieve a good risk adjusted return?
How do you define this and how will or is it defined in your client’s head?

Why not understanding the client’s hopes, fears, dreams, aspiration and values as it relates to family, work, life, legacy … economic reality.

We in the finance industry must be careful not to create a mental construct based on what appears to make sense in our “world”, after spending countless hours pondering the questions and assuming the woman or man on the street will understand and benefits.

Is it not a Wealth Manager’s job to act as a General Contractor for the client?
Taking responsibility and worries away?
Hence, all other topics (understand by questioning) should come first.