The private wealth management industry has some huge challenges over the next 12 months, with advisers needing to get to grips with new trends in social media and technology in particular.
Click to browse our full PDF library of private wealth management white papers
From a technology perspective, the ongoing rise of automation, such as electronic distribution platforms and robo-advisors, is likely to speed the evolution of wealth management distribution and disrupt the core operating model of many firms — for both institutional and retail business.
Wealth Management evolution - social media and technology
On the social media front, expectations are changing as a new cohort of HNW clients emerges who have been raised in the digital age. Real-time responses are welcomed and expected, bringing risk but also huge opportunity to build more personal client relationships.
A recent paper from KPMG, cited below, examines how wealth managers should respond to these new trends and the steps they should take today, in order to prepare for the social network applications of tomorrow.
Ongoing trends in the private wealth management industry
In terms of the other drivers of change in the private banking and global wealth management industries, here are some of the key factors highlighted in the E&Y paper cited below:
- M&A activity within the industry
- Regulation – MiFID II and transparency
- Investment within the wealth management industry to slow down
- An increasing return of cash to shareholders through buybacks
- Automated advisory platforms (so-called Robo-advisors)
- Governments forced to tackle pensions deficits
- The growing importance of ETFs
This 32 page report from KPMG argues that four key trends will drive wealth management; demographic, technological, social and environmental. These trends will feed on one another to magnify the overall effect. Wealth management clients have unprecedented access to information, and this changes the way optimal approach taken by wealth managers. The paper considers social risk and regulation, the use of social media to build your client base, and what CEOs should be doing today to prepare for the future.
This 12 page white paper from Ernst & Young is a quick but interesting read, identifying nine key trends, which it believes will reshape the wealth and asset management industry.
This 19 page survey reveals the key industry developments and secular forces that are changing the shape of the European Wealth Management Industry and the key factors wealth managers should focus on to gain competitive advantage.
In this 20 page report from Deutsche Asset and Wealth Management, the authors analyse how private wealth management will change over the next 15 years. The paper suggests that wealth managers should invest to meet the demands of a high-tech world and prepare for the preferences and value structures of future generations of customers.