New regulatory obligations coupled with a stream of new financial services and wealth management technology continue to accelerate the evolution of the industry. Among the top wealth management trends, threats, and opportunities, the ones that rise to the top include: (1) evolving customer needs, (2) changing advisory trends, (3) emerging technologies, (4) compliance and security, and (5) the pressure to automate.
Evolving Customer Needs
Investor needs are changing. Older investors are being influenced by their millennial children and investors across the board are demanding access to the same asset classes and investment strategies as High Net Worth investors. As a result, new marketplace models for wealth management products are being introduced and enhanced UX is becoming a wealth management priority.
Changing Advisory Trends
Client demands, regulatory mandate, and new competitive entrants put the pressure on wealth management firms to evolve fee models, offer hybrid advice solutions, enable holistic client view and account aggregation, and provide wealth management services to historically under-served segments.
Innovation is key for firms to be ready for the future of wealth management. Big data and advanced analytics are on the cusp of transforming the industry, while the use of cognitive computing, machine learning and artificial intelligence will expand. Automation continues to keep costs down and enable digitalization in wealth management.
Compliance and Security
Cyber security continues to be an important concern for wealth management firms and the industry as a whole. An increase in the cost of doing business is expected due to complex regulations around protecting data and increased effort in fending off cyber attacks.
Pressure to Automate
Wealth management firms are feeling the need to automate key processes, including onboarding, goal setting, and monitoring. More specifically, the automation of client data collection and asset allocation have been identified as priorities.
Market Analysts predict that the wealth management trends above will change the way firms do business. The right technology is key to preparing for the future of wealth management. Contact Univeris for more information on how we can help.