29 September 2023
Seoul’s art scene has been growing steadily over the past few decades, with the contemporary art scene gaining traction in the 1980s. Collecting art has become a popular activity among Koreans, leading to a rapid increase in art appreciation and consumption. The city now boasts a dynamic and sophisticated art ecosystem that includes world-class museums, galleries, corporate collections, nonprofit organizations, and biennials.
One of the key contributors to Seoul’s art scene is the passion and curiosity of Korean art lovers. They have shown a willingness not only to learn about art but also to share their knowledge and opinions about various works. Social media has played an important role in spreading awareness of new artists and exhibitions, attracting a younger audience that is actively engaged in discussions about contemporary art.
Frieze, the renowned international art fair, has recognized Seoul’s growing importance in the art world. In 2022, Frieze announced its first-ever fair in Asia, choosing Seoul as the host city. The move signifies the city’s growing appeal as an art market hub and destination for global art enthusiasts. The second edition of the Frieze Art Fair in Seul took place this September, and its success has maintained strong relationships with Korean galleries, institutions, and collectors, indicating the potential for future collaborations and exhibitions.
The arrival of Frieze Seoul has generated great excitement among collectors, galleries, and artists. The fair brings together established and emerging artists and showcases the latest works in contemporary art. It provides a platform for local and international galleries to connect with a wider audience and expand their reach in Asia.
Pace Gallery, a leading international gallery, has been instrumental in shaping Seoul’s art landscape. Recognizing the city’s potential early on, the gallery opened its first space in Seoul in 2017. Since then, Pace Gallery has expanded its presence and now occupies a 790-square-meter space in the upscale Hannam-dong district. Pace Gallery’s success in Seoul has inspired other art businesses to explore opportunities in the city, further fueling its growth as an art hub.
Seoul’s art boom can be attributed to the concerted efforts of various stakeholders, including government initiatives and the development of art infrastructure. The South Korean government has actively supported the arts, recognizing their potential as a driver of cultural and economic growth. It has provided grants, established arts districts, and invested in arts education to nurture and promote local talent.
In addition, the city has seen the rise of art districts and cultural complexes such as the Seoul Museum of Art and the Dongdaemun Design Plaza. These spaces serve as platforms for exhibitions, performances, and workshops, enriching Seoul’s cultural landscape and attracting art lovers from around the world.
29 September 2023
Technology visions are not new to the 300-plus-year-old kingdom. After Tony Blair’s “Cool Britannia” and Boris Johnson’s “Global Britain,” there is now talk of a “Unicorn Kingdom” or “Innovation Nation.”
Recently, American tech groups such as Palantir, Open AI, or Anthropic London confirmed their London offices. Recently, Silicon Valley venture capital firm Andreesen Horowitz also announced plans to establish a beachhead for its crypto investments on the Thames.
The City of London is considered the world’s most important financial center for fintechs. The UK government announced that the market value of the entire UK tech industry is $1 trillion; only the US and China can boast more. Tech investors brought to the country about 24 billion pounds last year, more than Germany and France combined. In the number of startups, the UK owns second place, just after the US.
But the government won’t be satisfied with that. AI is the way to overcome the growth problems. “The one that doesn’t bother to play the industrial policy game will lose,” Diane Coyle, an economist at the elite Cambridge University, notes for the German business daily Handelsblatt.
With its stagnant economy, the U.K. has been the growth laggard of the seven leading industrialized nations (G7) so far this year and, as in the 1970s, is once again being dubbed the “sick man of Europe.”
According to the Organization for Economic Cooperation and Development (OECD), output per hour worked on the island has stagnated since the financial crisis in 2008, with a meager increase of just 0.3 percent per year. That’s just one-third of the already low average for G7 nations.
The Alan Turing Institute unveiled a new AI strategy that focuses primarily on the use of smart machines in healthcare, environmental protection, and national security. “We want to harness the revolution in data science and AI and channel its energy into solving some of the biggest challenges facing our society,” Turing director Adrian Smith said for Handelsblatt.
All government departments are being urged to seize the opportunities offered by the new technology. In April, the British government had allocated 100 million pounds to accelerate the introduction of the technology. Modeled on the CERN nuclear research center in Geneva, there could be joint cutting-edge research into AI in a “controlled environment.”
With government aid of 500 million pounds, London is trying to persuade the Indian industrial group Tata to build its planned gigafactory for the production of batteries for electric vehicles in the UK. The government is also providing 900 million pounds to help build a supercomputer that will help develop the UK’s own BritGPT.
In the face of technological change, the U.K. cannot be satisfied with the status quo not only in AI, “but also in quantum physics, synthetic biology, semiconductors and much more,” Sunak said at the London “Tech Week” conference in mid-June.
Action has already been taken by the British government on the development of genetically modified foods. In England, it has been allowed to modify the DNA of plant foods for commercial purposes since March. Brexit now gives the British more freedom.
29 September 2023
Hong Kong boasts some of the world’s most prominent philanthropists, who have made significant contributions to various causes. Ronnie Chan, who is the chairman of the Center for Asian Philanthropy and Society, and his brother made news when they gave $350 million to Harvard University. This was the biggest gift the school had ever received. Lui Che-woo, Charles Chen Yidan, Run Run Shaw, and Li Ka-shing are also well-known donors who have done a lot for public service and education.
The high number of individual donations shows how kind the people of Hong Kong are as a whole. The Doing Good Index says that 32% of the budgets of Hong Kong charities come from individual gifts.
The city’s complex system for helping higher education, which includes a donation-matching program for universities, has brought in a lot of money and led to a 100-fold rise in donations to schools. One of the biggest charities in the world, the Jockey Club Charitable Trust, gives away an average of $512 million each year.
Hong Kong’s role as a global financial and business hub further strengthens its position as a regional philanthropic center. Despite recent challenges, the city remains a magnet for multinational corporations and global financial institutions. The Hong Kong Stock Exchange, the world’s largest by market capitalization, attracts significant investment and drives economic growth. In addition, Hong Kong serves as the regional base for many prestigious global universities, facilitating partnerships and collaborations in the philanthropic sector.
As the main way to get to mainland China, Hong Kong is a key link between the growing charitable sector in China and the rest of the world. Even before President Xi Jinping’s call for “shared prosperity,” Chinese philanthropists were giving back to their communities.
In the past few years, the number of Chinese charities has tripled to more than 8,000. Famous Chinese businesspeople like Cao Dewang stress the importance of social duty and giving back as a way to close the growing gap in wealth in the country.
The Hong Kong government recognizes the importance of philanthropy and actively supports the development of the sector. It has implemented measures to facilitate charitable activities and encourage corporate social responsibility. The establishment of the Institute of Philanthropy, under the auspices of the Jockey Club Charities Trust, demonstrates the Government’s commitment to promoting philanthropic endeavors and developing Hong Kong into a leading international philanthropic center.
The Philanthropy for Better Cities Forum, organized by the Hong Kong Jockey Club Charities Trust, exemplifies the city’s commitment to philanthropy. The Forum brings together philanthropists, policymakers, social entrepreneurs, business leaders, and academics to talk about how to make cities better and give people in urban areas around the world more satisfying lives.
Hong Kong wants to play an increasingly important role in promoting philanthropy and social effects both locally and around the world. Its goals go beyond its own borders.
29 September 2023
In recent years, the realm of Single Family Offices (SFOs) has witnessed a paradigm shift towards sustainable and ethical investing. This shift is not just a passing trend; it stems from a deep-rooted understanding of the pressing environmental and societal challenges we face globally.
For the uninitiated, ESG stands for Environmental, Social, and Governance criteria, three pillars that determine the ethical impact and sustainability of an investment.
By adhering to these criteria, single family offices are not merely ticking boxes for corporate responsibility. They are aligning their investments with ventures that have a sustainable business model. Furthermore, these investments are likely to show perseverance in the face of global challenges, potentially providing a better chance of durability.
Real estate remains a vibrant tile in the investment options, capturing the attention of UHNWIs. Given the inherent qualities of this asset class, its sustaining appeal is hardly surprising. But what makes real estate such a popular investment for many single family offices and their clients?
In an era when digital currencies and intangible assets are gaining momentum, real estate stands out. Owning a piece of the earth, a tangible asset that one can see, touch, and feel, has inherent value.
Even when stock markets are volatile, real estate often demonstrates resilience. While other investments may fall short during economic downturns, real estate properties generally retain their value. For example, home prices tend to rise over time, so purchasing a home has traditionally been regarded as a secure investment.
Diversification is a cornerstone of astute investing. By incorporating real estate into their portfolios, UHNWIs can spread risk across various asset classes.
The financial landscape is constantly changing. In recent years, single family offices have shown a clear preference for direct investments. This approach, which sidesteps traditional funds, is increasingly drawing the attention of the world’s wealthiest.
At its core, a direct investment involves putting money directly into a business or tangible asset rather than into a collective investment scheme.
The days of managing money in separate legacy systems are coming to an end, giving way to a more comprehensive approach that meets the different needs of UHNWIs. With a broader view of what constitutes “wealth,” today’s UHNWIs seek more than just financial growth. They demand a comprehensive strategy that includes health, education, and lifestyle. This also highlights a transformative shift in the traditional family office structure.
Traditional family offices, which were once primarily concerned with financial asset management, are evolving to meet these more holistic needs. Many are now collaborating with experts from various sectors, ranging from health professionals to global educators, to provide their clients with a 360-degree service experience.
The landscape of wealth management has long been shifting, but one focal point remains unchanged: the significance of succession planning. Trillions in assets are set to change hands in the upcoming decades. Consequently, UHNWIs are focusing more on the next generation’s preparedness. They aim to ensure the younger generation is both equipped and engaged for this transition..
While traditional investments remain important, the spotlight is now on the upcoming massive wealth transfers. According to Forbes, the adult children of the Silent Generation and Baby Boomers will receive an estimated $30 to $68 trillion when they pass away. This emphasises the importance of detailed planning to ensure a smooth transfer.
Succession planning is not just about asset transition; it encapsulates the transmission of family values, ethos, and long-established legacies. It is pivotal for families to have structures in place. It not only facilitates a smooth asset transfer but also retains the family’s core values. This is where family offices step in.
Beyond just asset management, single family offices are now working to:
In a world defined by rapid technological progression, single family offices are undergoing a paradigm shift. The drive to harness technological advancements is reshaping the wealth management landscape, with cybersecurity, data analytics, and automation leading the way.
As the financial world continues to digitise, the operations of SFOs are evolving to remain competitive and relevant. A piece from the EY survey of SFOs recently indicated that trends in technology and digital transformation are increasingly being highlighted as a top priority for SFOs.
The threat landscape is constantly evolving, and with greater wealth comes greater attention from cyber threats. To mitigate these risks:
In the complex fabric of global finance, collaboration is making its mark. The evolving landscape sees family offices filling gaps and coming together in a new paradigm. This collaborative investment approach is growing rapidly, offering an attractive pathway for UHNWIs to navigate the often unpredictable world of wealth management.
Collaborative models encompass:
According to a survey by the consulting firm Agreus, 64% of family offices have adopted a hybrid working model.
The shared investment approach presents numerous advantages:
The importance of financial literacy has increased as the special status of financial governance is gradually passed on to younger members. Single family offices recognise the importance of financial education, with many launching comprehensive educational programmes geared towards the next generation of leaders.
Financial literacy, far from being a mere supplementary skill, is emerging as an essential facet of modern wealth management. For the younger generation poised to manage substantial assets:
In an uncertain global environment, the age-old old saying “don’t put all your eggs in one basket” has never been more relevant to the financial sector. As UHNWIs seek stability and growth, diversifying investments across a broad range of assets, industries, and regions has become critical. As a result, family offices are broadening their horizons to ensure a well-rounded portfolio.
The benefits of diversification have been lauded for ages, but current global uncertainties have magnified their importance. Forbes states that the goal of a properly diversified portfolio is to reduce overall risk while maintaining portfolio performance.
Gone are the days when the primary motive for investments was merely wealth accumulation. Today, a growing number of UHNWIs are ensuring that their wealth not only grows but also leaves a positive imprint on society. As such, impact investing and philanthropy are rapidly becoming cornerstones of many family office investment strategies.
The concept of aligning one’s investments with personal values and societal benefits is gaining traction:
A Forbes report suggests that the global impact investing market has seen exponential growth over the past few years, indicative of this trend.
29 September 2023
ESG investing is a way of making decisions about investments that takes into account environmental, social, and governance issues. It understands that a company’s environmental, social, and governance practices have an effect on how well it will do in the long run and how well it will do financially. ESG investing tries to make money while taking into account how investments will affect society and the world as a whole.
Companies that put biodiversity protection and sustainable business practices at the top of their list are better able to avoid risks and take advantage of new trends. For example, companies that work with renewable energy, sustainable agriculture, and ecotourism are likely to benefit from the growing demand for green solutions. Also, companies whose supply lines take biodiversity into account can improve their image, attract customers, and get an edge over their competitors.
The laws and rules that govern species are changing quickly. All over the world, governments are putting in place rules and policies to protect biodiversity and deal with natural problems. Investors are also putting pressure on businesses, to tell the truth about how they affect the earth and to use sustainable practices. Because of this, companies that don’t deal with biodiversity risks may have to deal with damage to their image, legal liability, and less access to capital.
Taking ESG factors into account is one way to make sure that biodiversity is part of asset management. Asset managers can look at a company’s ESG performance and consider measures linked to biodiversity, such as how it affects ecosystems and how it protects species. By investing in companies with strong ESG practices, asset managers can make sure that their clients’ investments are in line with their values and help protect wildlife.
effect investing is putting money into businesses, organizations, and projects with the goal of making a positive social and environmental effect as well as a profit. Wealth management can find beneficial investments that help protect biodiversity, like sustainable agriculture, reforestation projects, and conservation efforts. These investments help protect biodiversity in a clear and tangible way, and they also make money.
Green bonds and other sustainable debt products give wealth managers the chance to invest in projects and programs that help protect biodiversity. These financial tools are made to pay for projects that are good for the environment, like renewable energy, healthy agriculture, and conservation efforts. Wealth managers can put money into projects that directly help protect wildlife by investing in “green bonds.”
ESG investing is more than just a financial strategy; it’s a way of looking at investing that takes into account the whole person and how our financial well-being is tied to the health of our world and society. As investors become more aware of how important biodiversity is in the investment world, they are not only looking for financial returns but also companies that actively work to protect biodiversity.
This change in viewpoint puts more emphasis on the long-term success of investments and makes sure they are in line with moral values. By combining ESG criteria and impact investment strategies, asset managers can help their clients make a positive impact on biodiversity while securing their financial future. By doing this, they join a larger movement that supports responsible spending and works to solve the most important environmental and social problems of our time.
29 September 2023
Family governance is one of the most important conversation topics among UNHW families. Many wealthy families are now internationally resident, and the wealth can be lost as a result of generational change. Therefore, for almost a quarter of UHNW families, subjects such as succession planning, philanthropy, and wealth structuring are elementary.
According to research done in 2021 for The Australia and New Zealand Banking Group, the banking and financial services company, more than half of private banking clients believe it’s appropriate to start discussing wealth succession with their children before age 21.
Sometimes the next generation may not fully understand their family’s wealth—how it was built, how it’s structured, or what has been said about it outside the family. Still, glory and repute are of crucial importance.
In the beginning, it is necessary to know how much the children understand and what else they should be made aware of. Wealthy families may have tricky assets that can’t be easily divided and spread among children.
These can include businesses, properties, artworks, vintage cars, or other collectibles. Some assets may have sentimental value for the heirs that outweighs their financial worth. It is important to clearly discuss who these assets will be left to and the reasons why.
It is good to know what the key message is concerning the conversation about wealth. What is the purpose of the family wealth? What are the intentions behind it? Try to set an agenda with conversation topics. Talking about what you want to work through and letting the heirs or adult children talk about their expectations and ideas is the essential principle of wealth transfer discussion.
Family relationships are the most important family matter, and they have to be preserved. So choose a respectful, non-confrontational tone within the conversation. Stay positive and keep the greater good of the family in mind. Keep the language in the initial scripts neutral, avoiding any accusatory words that could hurt a relationship.
Since the young generation has a different attitude towards family wealth, its priorities are different. Sustainable investing and philanthropy are the most challenging issues of these times. Every wealthy family will have to handle them one day.
Philanthropy is usually something everyone can get behind and opens the door to broader money discussions. Ideally, you’ll talk about the importance of giving when the kids are young so that when they’re older, you can be open about your legacy intentions and how philanthropy might be incorporated into your plan.
One of the most effective ways to manage conversations about family wealth with adult children is to start the process by meeting with an adviser before any conversations start. An adviser can be helpful in any part of the conversation. He or she can be the moderator of a legacy discussion or someone who educates the children about financial matters and family wealth management.
Following the trends in the world of finance, he or she can take a new look at financial matters. An adviser can add a lot of value as an objective third party, and if necessary, he or she can also direct family members to other experts.
28 September 2023
If you sell a product, you always get a clear indication from your prospective customers whether or not it meets their needs. Philanthropy and non-profit organizations function differently than for-profit enterprises, where the merits of a product or service stand up to market scrutiny. Still, one thing remains in common for both: the efficiency of the outcome.
Philanthropy is not charity or donations. Nowadays, it is about identifying the roots of disadvantage, finding out the connection between global problems, and possibly helping with solutions. The strategic perspective, the willingness, and the strength to adapt are to be considered the most important characteristics in order to have an impact. Making a plan before taking any action is not boring; it is the prerequisite for efficiency and permanence.
At the very beginning, the straight answers to the following questions are inevitable: Do you have a passion for achieving positive and sustainable change in some area? Is it a passion or a need? Can your philanthropic work fill a gap? Who are the other players out there? Can you cooperate?
If decided, there are different ways to reach the goal. Let´s find the one with the greatest impact. Helping poor kids does not necessarily mean supporting them or their families directly with money. What about paying for the school, teachers, or football training instead?
In cases of complex problems, it is good to find an organization or foundation working in the area. What is its aim? Does it work transparently and impactfully? What structure does it have? Did the organization achieve any measurable success?
The foundations should have a structure and procedures to monitor whether the organization is achieving the goals it has set for itself with its funding. It is good if the great personal commitment of its employees is visible.
The industry faces challenges such as increasing complexity, driven by regulatory requirements as well as self-regulation, digitization as an essential piece of efficient operations, and demands for more transparency. This holds true, especially for fundraising organizations.
Wealthy families have a long history of philanthropy, rooted in long-held values. Each individual and family’s approach to philanthropy is unique and, as a result, requires a customized solution. Additionally, philanthropy comes in many forms of giving—time, treasure, and talents—and actions can include volunteering and mentoring, donations, or even serving on the board of a philanthropic organization.
Some families may have a more passive approach to philanthropy, for example, by simply making regular charitable donations, while other families may be more active and run their philanthropy like a business venture. They have expertise in the area, and many times they cooperate with other like-minded families within the world in order to remain relevant in the sector and seek efficiency. Thus, their philanthropic impact is maximized.
You can see more articles about philanthropy in Altoo’s special section.
28 September 2023
The report looks at three financial asset classes – securities, insurance/pensions, and deposits – and 57 markets, from the richest countries such as Switzerland and the US to emerging economies Pakistan and Indonesia. In this line of thought, different assets and markets perform differently, but the general downward trend is there.
The good news is that, in nominal terms, global household financial assets were nearly 19% above pre-COVID-19 levels at the end of last year. If we calculate inflation, however, almost two-thirds of this disappears, reducing the result to a meager 6.6% over three years. While most regions can at least maintain some real wealth growth, the situation in Western Europe is different: all nominal gains have been wiped out and real wealth is down 2.6% in 2019.
“For many years, savers have been complaining about zero interest rates,” said Ludovic Subran, chief economist at Allianz. “But the real enemy of savers is inflation, and not just its spike during QE19. Globally, three-quarters of the nominal growth in financial assets over the past 20 years has been eaten up by inflation.
This underscores the need for prudent saving and high financial literacy. Inflation is a beast that is hard to beat. Without incentives and subsidies for long-term saving, most savers may face difficulties.”
The expectation is that global financial assets should return to growth in 2022, following the downturn in the current year, and so far the positive outlook comes primarily from equity markets. Overall, Allianz expects global financial assets to increase by around 6%, given the further “normalization” of savings behavior.
“The medium-term outlook is quite mixed,” said Patricia Pelayo Romero, co-author of the report. “There are no good monetary and economic prospects. Over the next three years, the average growth of financial assets is likely to be between 4% and 5%, with an assumed average return for stock markets.
But like the weather, which is becoming more extreme amid climate change, more market volatility should be expected in the new geopolitical and economic landscape. ‘Normal’ years may sooner become the exception.”
The interest rate turnaround was also clearly felt on the liabilities side of the private household balance sheet. After global private debt had risen by +7.8% in 2021, growth weakened significantly last year to +5.7%. The sharpest fall was seen in China: last year‘s debt growth of +5.4% was not only well below the growth in 2021 (+13.9%) but the lowest rate on record.
Overall, global household liabilities totaled EUR55.8trn at the end of 2022. At the same time, the gap between debt and economic growth widened to 3.9pps in 2022. As a result, the global debt-to-GDP ratio (liabilities as a percentage of GDP) has fallen significantly by more than 2pps to 66.1%.
This means that the global debt ratio for private households is back at about the same level as it was at the beginning of the millennium – a remarkable level of stability that hardly fits the widespread narrative of a world drowning in debt.
Declining assets and rising liabilities mean that global net financial assets (financial assets minus liabilities) fell significantly in 2022 by -5.1%, the worst performance since the GFC (-11.8%). Overall, global net financial assets amount to just under EUR177trn at the end of 2022, down EUR9.6trn compared to the previous year.
However, advanced regions such as North America and Western Europe recorded the strongest declines. In other regions, especially in Asia and Eastern Europe, assets continued to grow faster than debt in 2022, resulting in strongly rising net financial assets.
28 September 2023
This article aims to delve into the transformative potential of Open Banking API in shaping the future of financial management for wealthy individuals. It will discuss what is Open Banking API and how it has the potential to transform the financial ecosystem.
Open Application Programming Interfaces APIs are a revolutionary model that allows third-party developers to build applications and services around a financial institution’s existing software.
It acts as a bridge between your bank’s services and other third-party services. What makes this especially appealing for High Net Worth Individuals (HNWIs) and Ultra High Net Worth Individuals (UHNWIs) is the unparalleled access it provides to a range of services and functionalities that can be tailored to fit sophisticated financial portfolios.
Imagine a HNWI with multiple investment accounts, real estate holdings, and various other assets scattered across different banks and financial institutions. Traditionally, he has to log into each institution’s portal separately to manage the assets, track the portfolio’s performance, and even to make simple transactions. This may become an unmanageable range of tasks.
Now, enter Open Banking API.
With Open Banking API, a third-party financial management app could aggregate all this information for you in real-time. Instead of logging into multiple websites or apps, you could use a single app to view your entire financial landscape. This app could integrate with each of your banks through their Open Banking APIs, pulling data into one dashboard that shows your complete financial status. From this dashboard, you could:
In this scenario, Open Banking API simplifies and centralises your financial management process, offering you a consolidated view and streamlined control over your diverse assets. This is particularly advantageous for HNWIs and UHNWIs, who typically have complex financial portfolios spread across multiple platforms.
Below, we delve into the key features that Open Banking API brings to the table.
One of the advantages of Open Banking API lies in its capacity to overhaul traditional asset management. By integrating with a range of services, it allows for real-time tracking of diverse assets, from equities and bonds to real estate and other tangible assets.
By enabling real-time tracking and access to transactional data, Open Banking API significantly aids in informed investment decisions, optimizing diverse portfolio management, and improving risk management through automated reporting.
When you are dealing with multiple financial portfolios, one of the biggest challenges is aligning them with your overall financial strategy. Open Banking API excels in this by offering integrated financial solutions that can be customized to suit individual needs. These can include:
While these features offer promising avenues for improving financial management, they are not a one-size-fits-all solution. In fact, integrating these strategies might bring complexities and risks, hence the necessity to consult financial advisors for a tailored approach.
The potential for innovation in the financial sectors is robust, owing in part to the flexibility and customization that Open Banking API offers. This is particularly crucial for UHNWIs and HNWIs, who often manage complex portfolios across a range of financial products or services.
The crux of the innovation lies in the democratization of financial data and services. Gone are the days when banks and financial institutions acted as gatekeepers. Open Banking API encourages:
UHNWIs and HNWIs stand to gain significantly from these advancements. The high level of personalization and flexibility provided by Open Banking API is particularly aligned with the needs of those with substantial assets and varied investment portfolios. Here’s why:
Open Banking API technology offers solutions that are not just about convenience but also about potentially resolving financial challenges.
One of the cornerstones of Open Banking API is the ability to offer tailored financial services and products. UHNWIs and HNWIs often deal with:
The value of security multiplies for individuals who manage significant assets. Cybersecurity remains a top concern for wealth managers and their wealthy clients. Open Banking API brings to the table:
As Open Banking API gains traction, regulations form the crux that balances innovation with safety. Understanding these norms may be indispensable for UHNWIs and HNWIs to comprehend the safety net that guards their financial interests.
At the forefront of these regulatory measures is the Second Payment Services Directive (PSD2), an EU directive that reshapes the financial ecosystem. The revised Payment Services Directive (PSD2) in the European Union (EU) aims to provide more convenient and individualized financial products through open banking (OB) platforms. Here are key aspects UHNWIs and HNWIs should understand:
The adoption of Open Banking API is faster in the European market, primarily due to PSD2 compliance.
While PSD2 sets a precedent, the global scenario is a mosaic of regulatory environments, which includes:
The regulatory landscape, including PSD2, is a crucial factor in Open Banking API’s security and potential benefits. However, it’s essential to consider that regulations are subject to change and can vary greatly between regions. For personalised, up-to-date insights, consulting a legal advisor with expertise in international financial regulations is advisable.
Open Banking API offers a spectrum of possibilities that could revolutionise the financial management landscape for Ultra-High-Net-Worth Individuals (UHNWIs) and High-Net-Worth Individuals (HNWIs). However, it’s essential to weigh both the merits and potential drawbacks.
Open Banking API could be a game-changer in the wealth management space. While it offers unprecedented customization and accessibility, it also raises questions about data security and regulatory certainty. It is advisable for UHNWIs and HNWIs to keep a pulse on emerging trends and regulations in this domain and to consult experts to tailor strategies accordingly.
28 September 2023
The study will use a robot to surgically place a brain-computer interface (BCI) implant in a region of the brain that controls the intention to move. The implants, which have already been tested in monkeys, will interpret signals produced in the brain. The relevant information will then be relayed to devices via Bluetooth.
At his 2020 presentation, Musk unveiled a new implant design. “It was complex, and you still wouldn’t look quite normal; you’d have something behind your ear,” he said of the old design. “So we simplified this to something that’s about the size of a large coin, and it goes inside the skull.”
It is not known how many patients the FDA ultimately approved. The company had previously hoped to get possible implantation of its device in 10 patients. It later negotiated with the U.S. Food and Drug Administration for a smaller number of patients after safety concerns, current and former employees told Reuters.
As Reuters reports, right now those with paralysis due to cervical injury or amyotrophic lateral sclerosis can qualify for the trial. It will take about six years to complete. Even if the BCI device proves safe for human use, experts say it would still potentially take more than a decade for the startup to secure approval for commercial use.
Elon Musk, however, has big ambitions for Neuralink. He says his startup would facilitate rapid surgical deployments of its implants to treat problems such as obesity, autism, depression, and schizophrenia.
The billionaire entrepreneur isn’t the only one in the industry using the BCI in research. In 2021, Precision Neuroscience, a competitor based in the United States, was founded. With the goal of helping patients with paralysis operate digital devices by decoding their neural signals. In June 2023, the company conducted its first clinical trial in a human.
In seconds, a real-time, high-resolution representation of the patient’s brain activity washed across a screen. According to Precision, the system provided the highest resolution image of human thought to date, CNBC reported.
Several companies, including Synchron, Paradromics, and Blackrock Neurotech, have also developed devices with this capability.
28 September 2023
UHNW families clearly seek a legal structure that enables them to not only preserve their wealth but also to pass on their wealth in a thoughtful manner. The younger generations want to be more involved. Today’s ultra-high-net-worth (UHNW) families and their Family Offices use more complex governance and investment strategies, like those used by institutions, to keep their wealth safe for future generations and pass it on to their heirs.
Still, the connection between the Family Office and Private Asset Manager can be the most proper instrument in many ways. By gaining the trust and loyalty of Gen X and millennial inheritors, the asset management firm can greatly benefit in the long term.
Millennials are famously more socially conscious than their parents and grandparents, with keen interests in ESG, socially responsible investing, and transparency. At the same time, asset managers are creating tailored content as well as products and services that align with the unique views of younger generations.
They market ESG commitment, communicate clearly, and use a digital-first approach. Thus, misunderstandings are minimized by facilitating communication. Family members can retain a measure of control, even though most of the responsibility lies with Private Asset Managers.
Families striving to preserve family unity, mission, and vision can give their heirs a head start in transitioning. They can bring their kids when they are old enough and let them have some say and learn something before it is time for the next generation to take over the relay. Family members still get the benefits of having access to the most appropriate jurisdictional trust law and courts, as well as the benefits of asset protection and estate tax planning that its knowledge and experience offer.
Institutions like Private Banks and Independent Asset Managers may be able to bring in a new crop of investors by making things easier for everyone and giving their clients a more complete picture of their wealth.
Above this, the Altoo Wealth Platform also offers a more comprehensive view of the accumulated wealth. “Private Bankers and Independent Asset Managers have access to a robust resource with all the bells and whistles necessary to maintain their current level of success”, Altoo says.
Here, the modern way of family wealth management is being done via the adoption of digital wealth data consolidation and management. “This strategy frees up resources and helps wealth management entities make informed financial decisions by leveraging real-time reporting”, Altoo notices. The effective connection between the Family Office and Independent Private Asset Manager needs a reliable expert tool in order to preserve the family fortune.
28 September 2023
The relationship between James Bond and Rolex began in the early 1960s with Sean Connery’s portrayal of the suave secret agent. In the first Bond film, Dr. No (1962), Connery wore the Rolex Submariner 6536, marking the beginning of a long partnership between the brand and the iconic character.
The Rolex Submariner became the quintessential Bond watch, representing the perfect combination of luxury and functionality. Its rugged design and water resistance made it the ideal companion for Bond’s action-packed adventures. Connery continued to wear the Submariner in subsequent films, including From Russia With Love (1963) and Goldfinger (1964), solidifying its status as the secret agent’s watch of choice.
In 1969, George Lazenby took over the role of James Bond in On Her Majesty’s Secret Service. With a new Bond came a new watch, as Lazenby wore the Rolex Chronograph 6238. This departure from The Submariner demonstrated the versatility of the Bond character and the franchise’s willingness to embrace different watch styles.
Lazenby’s time as Bond may have been short, but his pick of a Rolex Chronograph will be remembered for a long time. The watch’s sleek design and chronograph features added a bit of class to the character and helped Rolex become even more closely linked with the famous Agent 007.
Roger Moore took on the role of James Bond in 1973 and brought his own flair to the character. During his tenure, Moore continued the tradition of wearing Rolex watches, specifically the Rolex Submariner 5513. This model, with its clean and timeless design, perfectly complemented Moore’s suave and sophisticated portrayal of Bond.
Q Branch, the made-up research and development branch of MI6, made some unique changes to the Submariner during Moore’s time as Bond. These changes, like a buzzsaw bezel and other secret gadgets, made the already famous watch even more exciting and mysterious.
In 1995, Pierce Brosnan took on the role of James Bond in GoldenEye, marking a new chapter in the franchise and a change of watch brand. Omega became the suave secret agent’s watch of choice, starting with the Omega Seamaster 300m Quartz Professional model # 2541.80.00.
The Omega Seamaster offered a modern and sporty alternative to the Rolex Submariner, reflecting the evolving tastes of the Bond character and the changing landscape of the watch industry. Brosnan’s Bond has worn various iterations of the Seamaster throughout his tenure, each representing the perfect blend of style and functionality.
With Casino Royale (2006), which starred Daniel Craig as James Bond, the series became darker and more real. Craig’s Bond gave the character a new look, and with it came a new line of watches like the Seamaster Diver 300M Co-Axial 41mm and the Seamaster Planet Ocean 600M Co-Axial Big Size.
Craig’s Agent 007 showcased the versatility of the Omega Seamaster, moving effortlessly from formal occasions to high-octane action sequences. The Seamaster Diver and Planet Ocean models became symbols of Craig’s rugged and no-nonsense portrayal of Bond, appealing to a new generation of watch enthusiasts.
Even though they were important parts of the Bond movies, these watches have gone beyond the movies to become sought-after collector’s items and classic fashion statements. The Rolex Submariners that Sean Connery and Roger Moore wore have become legendary watches that people all over the world want to wear.
Not only do they have a long-lasting appeal because of their link to the famous secret agent, but also because of how well they are made and designed. They are a great example of the lasting appeal of classic luxury watches.
When Pierce Brosnan and Daniel Craig switched to Omega, a whole new group of watch fans got to know the Seamaster line. With their combination of cutting-edge technology and elegant design, Omega Seamasters have cemented their place among the most famous watches.
Bond’s watches have not only helped define who he is as a person, but they have also left an indelible mark on the world of horology. They tell us that style, sophistication, and new ideas will always be around. So, as we keep watching James Bond go on dangerous missions, we can’t help but admire how elegant and consistent his wristwear is, even as it changes over time.
27 September 2023
Luxury brands prioritize personalization, tailoring offerings to individual preferences. Using data, they offer personalized recommendations, exclusive offers, and customized services to create a valued and understood customer experience.
One example of personalization in the luxury brand industry is the practice of creating custom products. Luxury fashion houses such as Louis Vuitton and Gucci offer bespoke services where customers can have clothing and accessories made specifically for them. This level of personalization not only ensures a perfect fit, but also creates a sense of exclusivity and uniqueness for the customer.
Exclusiveness and scarcity are the hallmarks of high-end brands, which use limited availability to create high demand and a sense of urgency. They employ strategies such as limited edition collections, invitation-only events, and memberships to achieve this exclusivity.
For example, luxury watch brands such as Rolex and Patek Philippe are known for their limited production runs and waiting lists. This scarcity creates a sense of desirability and exclusivity among customers who are willing to wait and pay a premium for these coveted timepieces.
From the quality of the materials used to the craftsmanship involved in the production process, every aspect of a luxury product is carefully considered. This commitment to excellence extends to the customer experience.
Premium brands invest in highly trained associates who are knowledgeable about their products and can provide customers with expert advice and assistance. Whether it’s a personal shopper at a luxury department store or a concierge at a luxury hotel, these professionals ensure that every interaction with the brand is seamless and memorable.
Luxury brands are integrating their physical stores, online platforms, and social media channels to create a cohesive and immersive brand experience. For example, luxury fashion brands such as Burberry and Chanel have embraced digital technology to enhance the customer experience. They use augmented reality (AR) and virtual reality (VR) to allow customers to virtually try on clothes or experience their products in a virtual environment.
Luxury brands recognize that the customer journey doesn’t end with the purchase. They focus on after-sales service and building long-term relationships with their customers.
These brands often go above and beyond to ensure customer satisfaction. For example, luxury car brands such as Rolls-Royce and Bentley offer personalized concierge services to help customers with everything from scheduling maintenance to arranging special events.
Leading up-market brands are constantly innovating and adapting to stay ahead of the curve. They invest in research and development to create new products, explore new technologies, and anticipate changing consumer preferences.
For example, luxury beauty brands such as Estée Lauder and Dior have embraced augmented reality (AR) technology to provide customers with virtual makeup try-on experiences. This innovative approach not only enhances the customer experience, but also enables luxury brands to stay relevant in a digital-first world.
27 September 2023
Elected directly by the people, the public takes her president as an example in many respects. In conservative Slovakia, she is courageously and passionately advocating the equality of homosexuals and ethnical minorities. Tirelessly committed to climate protection, in 2016 she was awarded the prestigious Goldman Environmental Prize, also called the Nobel Prize for Ecology.
After old-fashioned politicians, Zuzana Čaputová won the 2019 presidential election in Slovakia as a fresh liberal wind in Middle- and Eastern Europe. Her progressive and pro-European Union stance has positioned her as a key figure in Slovakian politics. She has been celebrated for her dedication to human rights and environmental protection.
“Her career can be challenging for many climate activists”, says Jozef Lenč, the Slovak political analyst. She is also an example of a woman who is politically active, not only as the first woman to hold the office of President of the Slovak Republic but also, at the age of 45, the youngest person ever to hold this office.
“Originally, I wanted to study psychology. I find it meaningful to do work that is a service to something important. Environmental issues are close to the most important values, which are life and health. So, as a lawyer, I started working on these causes,” she said in an interview.
“We can be proud of our president; she is doing a great job”, said 46-year-old Karolina Ciglianova in the street poll done by German public TV. This is the most common opinion concerning the Slovak president´s work. Zuzana Caputova has led the credibility rankings since she took the presidential office.
The divorced mother of two daughters is widely and internationally respected. Pope Francis accepted her invitation and visited Slovakia in 2022, after 19 years since John Paul II did so. Immediately after the outbreak of the war in Ukraine, she expressed her unlimited support and became a strong supporter of Ukrainian NATO and EU membership in order to establish peace and stability.
“We will take care of your wives and children as long as you need it”, she said in her speech in the Ukrainian parliament, earning a standing ovation. Up to now, Slovak-Ukrainian borders have crossed almost 400,000 refugees from Ukraine, most of them women and children.
In May 2022, the Slovak President visited Switzerland. With President Ignatio Cassis she visited the Federal Technical University (ETH) in Zürich, where the Slovak scientist Aurel Stodola (1859-1942) served as a professor of mechanical engineering.
27 September 2023
Robo-advisors are a transformative innovation in financial institutions. They are redefining the private banking experience for Ultra High Net Worth Individuals (UHNWIs) and High Net Worth Individuals (HNWIs). Robo-advisors may become an indispensable tool in the modern wealth management industry. They offer convenience, data-driven strategies, and potentially higher returns.
The assets and investment management services by robo-advisors will exceed $450 billion by 2024. This figure demonstrates their growing importance in private banking.
Moreover, JPMorgan is working on over 300 AI use cases and has invested more than $2 billion in cloud-based data centers for AI applications. The move towards AI-based financial advisory is an inevitability.
This article explores how robo-advisors are changing the traditionally human-dominated sphere of private banking. We will delve into the technology behind these platforms, the range of services they offer, and how they could potentially change the game for UHNWIs and HNWIs.
The advent of robo-advisors has a significant shift in a wide range of assets under management AUM, especially in the world of ultra-high-net-worth individuals (UHNWIs) and high-net-worth individuals (HNWIs). By being less time-consuming, this automated financial planning service uses algorithms to provide asset allocation advice without human intervention. This makes it an attractive option for a segment of the market that prioritizes efficient and low-cost investment solutions.
In the financial landscape, efficiency is crucial for UHNWIs and HNWIs, who often have extensive and complex portfolios. Automation serves as a game-changer in this context for several reasons.
Automation brings about a level of efficiency that is almost unattainable through human efforts alone. For high-net-worth clients who seek to optimize their investment strategies while minimizing costs, the use of advanced, data-driven robo-advisors could be a valuable consideration. However, it’s important to remember that while these tools offer many advantages, they are not infallible and should be used in conjunction with professional financial advice.
While robo-advisors offer a host of benefits, it’s crucial to consider the limitations that come with automated financial management. Recognizing these challenges is the first step in making informed decisions.
One of the biggest concerns among investors using robo-advisors is the inability of these platforms to manage portfolios in times of increased market volatility. This resonates with the fact that automated systems may lack the crisis management skills offered by seasoned human advisors.
With a balanced approach, many of these risks can be mitigated.
While robo-advisors have their set of challenges, these can often be managed with careful planning and a well-considered approach. Even though robo-advisors offer a host of advantages, they are not a complete replacement for human expertise and should, therefore, be part of a broader investment strategy. By taking these steps, UHNWIs and HNWIs could potentially make more informed decisions in the evolving landscape of digital finance.
Looking ahead, several trends and emerging technologies could further refine and influence the role of robo-advisors in the wealth management sector, particularly for UHNWIs and HNWIs.
According to a research article published in the Journal of Behavioral and Experimental Finance, the integration of more advanced AI algorithms in robo-advisory platforms could revolutionize the way risk assessments and financial projections are made.
The concept of ‘hybrid models,’ combining both human expertise and algorithmic efficiency, is garnering attention. Here’s why this approach is getting traction.
Both of these examples illustrate the effective combination of human expertise and algorithmic efficiency, offering a more tailored financial management approach for UHNWIs and HNWIs.
While the future of robo-advisory services is promising, it’s essential to keep an eye on emerging trends and consider hybrid models for a more balanced and customized approach. These strategies could potentially offer UHNWIs and HNWIs the best of both worlds, making their financial planning more robust and adaptive.