Mohammad Syed, managing director and head of global markets at Coutts, has issued a stark warning to wealth managers not investing in technology, claiming they will be left behind by the industry.
Syed said if wealth managers did not invest in the best technology available, then costs would simply be passed onto the end client.
The global markets head said Coutts has invested close to £20m in its wealth platform over the past two years in order to ensure the firm's systems remain efficient and cost effective.
"As technology is moving at such a rapid pace, what you put in today is fundamentally obsolete by the time you actually implement it. But if you have not done it all, imagine how far back you are going to be," Syed said.
He added there was fragmentation within the wealth management industry, which has yet to consolidate enough, with many sub-scale firms who were too expensive for the end client.
Syed argued it was a question of technology, as many of these firms had not made the most efficient use of their internal resources and had "clunky" legacy systems.
In particular, Syed predicted blockchain technology is set to have a fundamental impact on the financial services industry.
He said the technology would impact everything people do from using Amazon to banking and healthcare.
"Disruption is an overused word. However, if anyone is not looking at blockchain, they are burying their heads in the sand," he said.
"I do not know of any big bank that is not actively using it, about to use it or researching it as it is fundamentally changing banking.
"Technological change is undergoing a fundamental shift that each company will have to adapt to, so we are absolutely looking at [blockchain]."
From an investment perspective, Monique Wong, multi-asset investment manager at Coutts, compared blockchain to Wi-Fi back in the 1990s.
The challenge, she said, is the technology is not entirely proven, claiming it made more sense to invest in businesses that incorporate the technology, rather than the technology itself.
"You can see the uses for [blockchain] but it may be more prudent to invest in the businesses that engage with the technology."
A number of financial services firms have entered the digital ledger space, including Swiss private bank and wealth manager Falcon who announced it would offer blockchain asset management solutions for clients, while SEI's wealth manager platform has started using blockchain to reduce costs and improve efficiency.
Two join in the top ten
Reducing equities and corporate bonds
Behaviours, animals or something else?
Stepped down following MBO
Helped by rising oil price