Delio: Observing a change in tech usage
Technology

Delio: Observing a change in tech usage

21st April 2020

The business world we know has changed over the last few months. With more and more professionals working remotely, many businesses have had to adapt digitally. Once deemed a nice-to-have for the wealth management industry, financial firms have now been forced to explore digital alternatives to services that have traditionally been delivered in person.

As we monitor the current economic situation and the current state of the private markets, we also decided to have a closer look at how controlled working conditions have impacted our platform users.

Online engagement is rapidly rising

A new era of digitisation has begun. Over the last few years, we have increasingly seen that investors are turning to financial institutions that offer a strong digital proposition. Not only are more people communicating digitally, but online transactions are becoming the norm. So in a world that has suddenly had huge restrictions placed on social engagement, is this trend now accelerating?

At Delio, we have seen some significant changes in platform-usage over the first quarter of 2020, as users take the time to scour for investment opportunities online. Since the start of the year, the number of logins onto Delio-powered platforms has risen by 85%*, indicating a significant trend that more investors are looking to progress investment opportunities digitally. Investors are not only looking to monitor their existing investments, but they are also seeking to strengthen their investment portfolios and protect themselves from a potential recession. Given that the number of monthly-shared deal opportunities on our Platform grew by 20%*, we can see that financial institutions are increasingly using tech to help their clients diversify their portfolios.

Angel networks and early-stage private investment firms, in particular, are embracing the benefits of tech during this period. Instead of events and pitch sessions, angel networks are using technology to support start-up and scale-up businesses – something that is even more critical now when start-ups can be fragile in these turbulent times.

User Metrics - Observing a change in tech usage - Delio
Live Deal Count - Observing a change in tech usage - Delio

The benefits of tech go beyond connectivity

Over the last few years, we have seen more and more financial institutions slowly turn to digital solutions to support their wealth management services. However, a surge in new users in the past month or so perhaps indicates that the current economic volatility has helped financial firms to better understand people’s need to manage their wealth online.

As financial firms have realised the urgency to offer digital services, many have looked to speed up their onboarding processes. Since countries around the world have slowly gone into lockdown, the number of users on the Delio Platform has grown by over 65%*.

All of these trends suggest that digital decision-making has accelerated rapidly. Where it used to take months for a financial firm to adapt, they have now been forced to do so in a matter of just a few days. While connectivity may remain the prime priority in the current climate, many financial firms now realise how technology can help them overcome the business challenges of today and tomorrow.

No going back from here?

As people across the world embrace technology to continue with their daily activities, it is slowly becoming clear that the post-pandemic business environment will likely look very different. Even before businesses were forced to operate from home, the younger generation of investors desired a more digital approach. COVID-19 has shown the flexibility of digital services and communication, highlighting the many benefits a digital strategy can bring. Previously often considered an investment approach for the young, a digital approach has shown that it can benefit all.

Until now, few financial institutions considered digital wealth management services a necessity. However, because many have experienced first-hand the consequences of adapting too slowly, financial firms can no longer neglect the digital tools available to them.

As and when governments slowly begin to lift restrictions, we can only predict the effects on the economy. However, one thing is sure: the world of wealth management as we know it is bound to change.

If you would like to find out more about how Delio technology can help you and your clients during this period and beyond, please don’t hesitate to contact us at team@deliowealth.com.

* All statistics based on cumulative usage of Delio powered platforms between 1 January 2020 and 17 April 2020.