Wealth management is a growing business, but it is being shaken up by some changes that are getting worse over time. Even though the pandemic made it hard for the wealth management industry (mainly US) to do well for most of 2020, the last few years have given people hope that the conditions are suitable for a big wave of new ideas and experiments across the wealth management ecosystem. Rapid changes in technology, consumer wants, and behaviors are changing quickly (thanks to the pandemic), and the economy is getting a boost. To do well in this changing environment, businesses must put growth first, be open to new ideas, and be ready to move resources quickly in response to changes. Lastly, firms can rethink their cost structures and get better at cost management to free up money for strategic investments and prepare for a possible market slowdown.
Opportunities for Wealth Management as Digital Transformation Rises.
- Change in Perceptions: Advice means different things to new investors. Bringing new ideas and expectations to the wealth management business will change how older investors buy and use wealth services. Investors want to know how to use various investment and funding methods to reach multiple, often conflicting goals.
- Costs Rising: WM firms and their parent companies face new problems because regulations are getting more challenging, and the cost of risks is going up.
- Changing Demographics: Advisors are retiring and leaving the business faster than firms can replace them. Wealth is about to change hands, disrupting the ties between clients and advisors.
- Advancing Technologies: Big data and advanced analytics will change how the WM business connects with new clients, manages client relationships, and handles risks.
- Technology Influx: With the rise of Robo Advisors, new advice models that use science and people have emerged.
- Changes in Business Ecosystems: New companies, business models, and renewed focus from existing WM companies will make competition for the same clients and assets fiercer.
Partnering with domain experts in wealth management, like Maveric Systems, positions leading banks to create unparalleled market value.
Conclusion
Wealth management is still a field with much room for growth, and it is becoming increasingly important to the financial health of a wide range of people. The big players now have a chance to “own” financial advice and become a crucial part of their customers’ lives by giving them better, more personalized service made possible by technology.
Successful wealth managers invest in digital operating models and data-driven insights, adopting a platform mentality while keeping the close human relationships typical of the field. But growing competition from established financial institutions and newcomers threatens the company’s substantial income and profit. Established business models are being pushed to their limits by low-cost, do-it-yourself investment, tighter regulations, the need to invest in technology, and more skilled workers.
About Maveric Systems
Starting in 2000, Maveric Systems is a niche, domain-led Banking Tech specialist partnering with global banks to solve business challenges through emerging technology. 3000+ tech experts use proven frameworks to empower our customers to navigate a rapidly changing environment, enabling sharper definitions of their goals and measures to achieve them.
Across retail, corporate & wealth management, Maveric Systems accelerates digital transformation through native banking domain expertise, a customer-intimacy-led delivery model, and a vibrant leadership supported by a culture of ownership.
With centers of excellence for Data, Digital, Core Banking, and Quality Engineering, Maveric Systems teams work in 15 countries with regional delivery capabilities in Bangalore, Chennai, Dubai, London, Poland, Riyadh, and Singapore.
