Digitalisation in wealth management has rapidly accelerated over the past few years, but there are six key areas firms should be focusing their efforts.
Digital wealth and investment management platform WealthObjects has listed the six key themes for the digital wealth management space over the next decade.
The first theme is making millennials a priority. The distribution of wealth is putting more money to the millennial generation and now it is time for wealth managers to put their efforts in building solutions and ecosystems that meet their needs.
Secondly, WealthObjects states firms should understand the world is moving towards open finance. Regulations like the general data protection regulation (GDPR) have helped a growing trend of protecting people’s personal data. Over the coming years, this trend will continue and client data will no longer be owned by a business. To that extent, it is important for firms to build digital business models and future-proofing data systems to generate insights.
The third theme is improved experiences. Customer experience has become increasingly important and the Covid-19 pandemic has only accelerated the demand further. Over the coming years, firms should be implementing automation, APIs, AI, cloud and hyper-personalisation across their channels.
WealthObjects sees the fourth trend being new macro variables, to which firms need to plan ahead to be resilient. Interest rate, inflation, growth, pandemics, and the climate are all new challenges to be accounting for. Wealth firms need to prep their tech to be ready for these and more.
Another trend that has been rising over the past few years is a focus on holistic life goals. Firms need to help consumers have better saving habits early to help them have more financial stability in life and for retirement.
Finally, WealthTech sees a focus on environmental, social and corporate governance (ESG) being crucial to survival. Support for these values are gaining momentum and only firms that engage with ESG and beyond will have a chance to survive.
Last week, WealthObjects released a blog explaining how digitalisation of client relationship management has become a critical part of wealth management and firms need to automate admin tasks to foster engagement.
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