Wealth Management Sector – Changing Consumer Behaviours

The Wealth Management sector is currently facing a rapidly changing digital landscape and there has been a dramatic shift in client expectations!

• It’s a brave new world! While the technical advancements of the last few years can be seen as a positive, there have been numerous regulatory changes and economic uncertainties, and the world has changed from where we were even 2 or 3 years ago
• Navigating these changes, means wealth management firms need to come out of their comfort zone and make bold choices to secure their long-term success, challenging their competitors in the process

The technical age is advancing fast across the board, and also not surprisingly in wealth management.

• Save time and money with technologies such as artificial intelligence, data analytics and streamlined onboarding: Optimise your operations and improve client service by using the vast array of Fintech now available
• Engage the media savvy generation: Many clients, often the younger generation, are eager to embrace technology as it provides 24×7 access to their financial information which they can personalise as they choose, so information is available when and where they need it
• Mix the old and the new: Many however, still want their personalisation in the form of a face-to-face (or at least telephone) conversation with another human being, but even these more usual interactions are now being aided by technology

WealthTech as its known, is being used to enhance decision-making in terms of speed and accuracy of data searches, improving the client portfolio and client services.

Robo-Advisory and Hybrid Models are also worth mentioning as expanding your robo-advisory services (or integrating them into a hybrid model by combining digital tools with human financial advisers) can cater to a broader client base, including younger investors who prefer digital solutions. Find more information about WealthTech in our article:  “Wealth Technology: Reshaping Wealth Management Recruitment “

• Personalisation at Scale: Leveraging big data and AI, firms can offer highly personalised advice and services
• Deepen client relationships and differentiate your firm in a crowded market, by creating tailored investment strategies, communication preferences, and customised financial plans
• Client Education and Engagement empowers clients to make informed decisions. Investing in educational resources and tools encourages clients to further interact through webinars, online interactive tools, and have regular digital updates. This can only further strengthen trust and loyalty

• Expanding your Holistic Wealth Management: Moving beyond traditional investment management to offer comprehensive financial planning services, including tax optimisation, estate planning, and philanthropy, can address the broader financial needs of clients
• Sustainable and Impact Investing: Incorporating Environmental, Social, and Governance (ESG) factors into investment strategies is increasingly important. Firms that develop expertise in sustainable investing can attract clients who prioritise ethical and impact-driven investments

• Proactive Compliance Management: Staying ahead of regulatory changes by adopting proactive compliance measures is crucial. Investing in regulatory technology (regtech) can help firms navigate complex regulations efficiently, reducing the risk of fines and enhancing trust
• Transparency and Fiduciary Responsibility: Strengthening transparency and adhering to fiduciary standards will be key to maintaining client trust in an era of increased scrutiny and evolving regulations

• Attracting and Retaining Top Talent: Firms need to invest in attracting, developing, and retaining talent with a focus on diversity and inclusion. A diverse and high-calibre workforce can bring fresh perspectives and innovative solutions to complex challenges
• Culture of Innovation: Fostering a culture that encourages innovation and agility will enable firms to respond quickly to changes in the market and client needs
• Tech Savvy Financial Planners will really help with digital adoption: It’s not about the age of the person, it’s about their aptitude and willingness to adopt adaptive working practices that support their clients’ needs

• Partnerships with Fintechs: Collaborating with fintech companies can often accelerate innovation, offering clients cutting-edge solutions while leveraging the firm’s established reputation and client base
• Mergers and Acquisitions: Strategic mergers or acquisitions can also help firms scale and diversify their offerings, and also expand into new markets or client segments. This is something that Truestar Talent also supports with their specialist division Truestar Legacy. To find out more, check out: truestarlegacy.co.uk

• Exploring New Markets: Wealth management firms can pursue growth opportunities by expanding into emerging markets or underserved regions, adapting their strategies to local preferences and regulations
• Diversifying Revenue Streams: Developing new products or services, such as private equity or alternative investments, can also help financial services firms diversify their revenue streams and reduce dependency on traditional income sources

• Strengthening Risk Management Frameworks: Enhancing your risk management framework to deal with increasing market volatility, cyber threats and other emerging risks will provide future-proofed resilience for your firm
• Scenario Planning and Stress Testing: Conducting scenario planning and stress testing for various economic and market conditions can prepare your firm for potential disruptions and ensure you can continue to serve clients effectively during turbulent times

By making these bold choices and competitive strides, wealth management firms can position themselves for long-term success, adapting to new challenges and seizing opportunities.

Embracing the rapidly changing digital landscape that is financial services in the UK can only further support wealth management client expectations and needs. This is why we are in this industry after all – isn’t it?

If you would like to know more about how we can help you in securing the very best tech savvy Financial Planners who will truly help you with your digital adoption, then contact us today.