Top 3 Trends that will Rule the Wealth Management Industry in the Future
The notion of wealth management advice only for the affluent class is slowly diminishing. The transfer of wealth across a new generation, the Gen X in the next few years will see a societal shift that will prosper new thoughts resulting in the fluid competitive landscape in the wealth management industry. The new generation is set to opt for complex financial arrangements to derive the maximum income of their net worth and ensure diversity in their wealth and assets spread out. Private Wealth Management Companies will play a pivotal role in serving clients through a customized advisory service, giving insight about the financial markets and making the right investment choices through strategies tailor made for specific individuals and their businesses.
The wealth management industry is growing at a rapid speed. The growth of the industry is also ensuring that things have to change with the time and the industry remains abreast with the current trends. Surveys and research led by the industry have propelled industry experts to predict three trends that will rule the wealth management industry in the future.
Ø A Spur in Growth in Women Clientele : Women empowerment has led to more and more women breaking from the confines of the home and entering workforce. This has resulted in greater wealth in their hands which they want to hold on until retirement. Women are better planners and savers and therefore advising them requires a great deal of preparation. Advisors have to come up with new ways to engage them as women think about their longevity and retirement much ahead of time.
Ø The Gen X investors: Known as the millennials, this group of investors will be booming large in the near future and create opportunities with their changing expectations. The industry expects the millennials to hold half of the nation’s wealth driving business and growth. The Gen X is an independent community with a distinct choice and mind of their own. They are not averse to the idea of taking risks nor do they hesitate to invest in different portfolios but they listen to wisdom and advice that appeals to them. Thus wealth management industry in the near future will be seen appeasing these young investors through innovation and ideation to enjoy a bright future.
The millennials are expecting answers beyond the traditional portfolio allocation and hungry for more knowledge and broader outlook to integrate their life’s goals.
Ø Technology: This is the latest trend being followed by the industry and is set to improve in the future. The wealth management sector is seeing the convenience of the customers and interestingly this has brought about the digitization of the advice, with offerings of online calculators and basic financial planning. This access to easy advice online has led to lowering of prices and a rise in customers from the middle income sector. The industry foresees a future where banks and insurance companies will inadvertently take up the role of advisory services through the digital medium.
The Wealth Management Companies are poised for a growth in the near future, however what remains fundamental is to ensure that the transformation of the core business with the digitization should not alienate their old customers who will always remain the bedrock of their business.