Fideuram-ISPB plans digital wealth service development with Alpian

Fideuram – Intesa Sanpaolo Private Banking (Fideuram-ISPB) has partnered with Swiss fintech group Alpian to advance its digital wealth management service.

The move expands the two firms’ collaboration established in April, which saw Fideuram-ISPB participate in Alpian’s Series B+ financing round with a CHF19 million equity investment.

Fideuram-ISPB will leverage Alpian’s expertise in technology development and mobile-first user experience for digital wealth management services to serve its clients.

“This strategic partnership demonstrates the potential of bringing together a large leading private bank and a new digital private bank to drive value for Fideuram-ISPB’s clients, employees and stakeholders,” said Schuyler Weiss, CEO at Alpian.

Alpian was incubated by Reyl Intesa Sanpaolo, the Swiss banking group majority-owned by Fideuram – ISPB. Incorporated in 2019, the Swiss fintech obtained its FINMA banking license in March and anticipates its public launch by Q3 2022.

“After the investment to launch the first Swiss digital private bank, we have found in Alpian a strategic partner to power the digital wealth management service offering of Fideuram-ISPB Direct Bank,” said Luca Bortolan, head of direct bank at Fideuram-ISPB.

“We will be leveraging the experience that the team has built while creating a mobile-first digital private banking offering using state-of-the-art technologies.”

Alpian will serve affluent Swiss clients by combining the use of machine and human intelligence to offer private banking services and investment expertise via an app.

Fideuram-ISPB intends to combine the digital bank’s mobile-based services expertise with its own private banking knowledge to develop a product roadmap for enhanced digital wealth management offerings.

Rise in tech-savvy investors steers the wealth management industry

The push for digitalization in the wealth management space is largely driven by the growing number of tech-savvy customers favouring innovation and access to services via web page or mobile.

According to a recent survey by Refinitiv, 35% of millennials and 34% in the 35-54 age bracket considered wealth managers’ digital capabilities when choosing a provider. The same survey also revealed that 72% of millennials and 56% in the 35-54 age brackets access their account information via mobile apps.

In light of the growing number of tech-savvy customers, Swiss financial entity SIX Group warned in its whitepaper, titled, Future of Wealth Management, that “wealth management products and services will need to be increasingly digitized to capitalize on this emerging market potential.”

Financial companies have responded to the growing demand for digital services by flexing their capabilities with new relationships and acquisitions.

In Switzerland, Mirabaud bank partnered with banking software provider Temenos and UK lifecycle management services company, Wealth Dynamix, to support the digital transition of its wealth management business.

In January this year, Swiss banking giant UBS acquired digital wealth management services provider Wealthfront for $1.4 billion, expanding its reach in the US and among millennial and Gen Z affluent investors.

Spanish group Santander collaborated with tech group SigFig to launch Santander PathFinder, a robo-advisory service for clients seeking to invest in ETFs.

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