Recently, we attended the launching of Bareksa Prioritas, the first digital wealth management platform for high net worth individuals (HNWI) in Indonesia, which includes individuals with minimum financial assets of US$1 million.
Co-founder of Bareksa.com Karaniya Dharmasaputra revealed that there are growth opportunities for financial technology industry in HNW segments because he has noticed that the growth of the middle-up population is increasing. Thus, he sees an opportunity to facilitate their access towards investment, especially wealth management, which will be integrated with digital technology and the Internet.
This is the main reason why Bareksa, which started as an online marketplace of mutual funds, launched its new service, called Bareksa Prioritas, to digitalise wealth management, especially for HNWI.
To further accommodate the needs of HNWI, Bareksa Prioritas integrates its digital service by partnering with independent professional investment advisors from Jagartha Advisors, which has been providing investment consultancy services for 25 years, equipping its team with the necessary skills and experience to help high-net-worth individuals manage their wealth.
The reason, according to Ari Adil, co-founder of Jagartha Advisors, is because HNWI have their own unique characteristics. Ari further elaborated that in digital wealth management service, the focus should be on how it can provide good service to high-segment customers, including face-to-face discussions, which is still needed in investment consulting. A report from fintech company Citigroup in 2016 revealed a rising trend in robo-advisors contributing to investor portfolios, replacing traditional advisor roles. However, for HNWI, traditional investments are still more accepted when it comes to financial management.
“There will be a time investors will face investment risk that are significant, which will involve their emotions, worries and fears,” said Ari. “This is the main point why the role of traditional investor is still very much needed to give logical consulting, and at the same time provide emotional guidance to investors.”