Wealth management clients want simpler and more accessible interactions.
In their latest Global Wealth Report, Boston Consulting Group (BCG) set out their predictions for the next 20 years of wealth management.
In a world full of data and technology solutions, the conclusion remains that people will be time poor and need trusted advisers to make sense of all the information available.
“Futuristic forecasts commonly paint a world filled with robots, holograms, implantable devices, and other extraordinary gadgets and tools. Many of these technologies will become important elements in the fabric of our daily lives, but what wealth management clients will want most from their providers in the future is simpler and more accessible interactions.
Strong performance will remain crucial but delivering it will take more than healthy financial returns. Providers must earn their clients’ trust and put wealth to work in a variety of interesting and productive ways.
By 2040, tens of billions of connected devices will likely churn out zettabytes of data and refresh those streams at dizzying speeds. Machines nested in our phones, homes, and workplaces will interpolate that data in ways that exceed human cognition. Clients will have more knowledge at their fingertips, but they will need insights more than ever.
The report goes on to look at what the next generation of clients will want from their wealth and expect from their advisers.
“For these younger generations, wealth won’t just be about money. It will also be about meaning, purpose, connection, and making a positive difference in the world.
Wealth managers will prove their value not solely by the breadth of services they offer or by their subject matter expertise, but by the depth of individualized attention and insight they bring to addressing their clients’ most complex needs.
Product and solution excellence will still matter, but the close nature of the relationship and the extensive information available on individual clients, their environment, and their context will be at least equally important.”
The BCG report also explores the effects Covid-19 could have in the short to medium terms with three possible bounce-back scenarios all of which continue to paint a picture of rising wealth being generated by increasingly tech-savvy clients.
To support BCG findings, Brooks MacDonald forecast that around £327bn will be transferred to 300,000 inheritors (an average of £1,09m) over the next ten years. That is more than the current size of the entire UK advice market (£274bn).
The size of the opportunity in front of advisers with the right mindset to attract the next generation of clients is huge.
However, as the head of a UK private bank quotes in the BCG report “The clients of tomorrow will simply not accept working with a wealth management provider that does not have top digital capabilities to let them access what they need at any time they want.”
Platforms and digital solutions alone will not be sufficient to establish trust.
The clients of financial advisers and wealth managers will continue to be those with complex financial lives who don’t fit into the easy models for financial advice. Having sold their business, inherited significant wealth or received large compensation payments, they need help to understand what to do and reassurance to hold their nerve when the markets move against them.
Digital must complement your client relationships and advice should be clear and very personal rather than something clients could do for themselves using any of the online providers.
Our technology is designed to beautifully complement the service your deliver, putting your brand in your clients’ pockets and enabling you to be with your clients in the moments that matter.
To find out how moneyinfo can get your business ready for the next twenty years please book a personal consultation with me.
Business Development Director