The future of wealth management
November 16, 2016
November 16, 2016
The coming of age of a new type of client, the emergence of new digital technologies such as robo-advice platforms and a plethora of new regulations have completely transformed the face of wealth management. These changes demand a new kind of business model—one that’s built on digitally led hybrid advice, customized for individual investors, and focused on goal-based planning and outcome-oriented investing.
In this report, Accenture examines the five most important trends that are shaping the future of wealth management and explains how wealth management firms can prepare themselves for the course change ahead.
Wealth management firms are facing competition not only from pure digital portfolio management platforms like Wealthfront and Betterment, but also non-financial players like Google.
Millennials are set to surpass Baby Boomers as the largest generation, and women will soon control a larger share of assets than ever before.
As the share of Millennial investors grow, so do service demand and fee sensitivity. These investors want transparency and control in wealth management and are vocal about their desire for lower fees.
Many firms remain skeptical of virtual interactions, but investors overwhelmingly value collaborative relationships enhanced by digital technologies.
Firms are being forced to reconstruct key areas of their businesses to comply with increased regulation concerning fraud prevention, fiduciary responsibility and more.
Even if your firm can appreciate and understand the trends that are shaping the new wealth management landscape, your leadership team needs to determine how your organization can and will respond. Start by asking the following questions:
The days of one-to-one product-led advertisement are now as dated as yesterday’s news
76%
Of investors don’t believe that digital technology limits face time or reduces the quality of the advisor
There is no one-size-fits-all approach for retooling and reinventing your firm in this new wealth management landscape. Nevertheless, certain principles are clear: