IDC research analyst Mirko Corbetta said the take-up of online wealth management services, primarily designed to manage the accounts and savings of wealthy customers, was being driven by the inability to sustain high customer-to-adviser ratios using traditional approaches.
"These clients are badly served by private banking and it is important that the banks start to cater for their requirements," said Corbetta. "This is the most important area for banks," he said.
Corbetta said the UK market had suffered as a result of too many players rushing into the market, exacerbated by slow demand. Demand will increase slowly, he said.
Exploiting the Internet as a channel will free up agents for more business-critical tasks and services, resulting in significant cost savings, Corbetta added.