As we complete two decades of this century, GenZ has entered their early adulthood and GenY, popularly known as Millennials, are close to being middle-aged. These are the people who grew up with the internet, they have their entire lives around it. And their love for the digital space seems to grow every year.
And these will be the people wealth managers will be serving in the coming years if they aren’t already.
The current industry veterans are from the pre-internet era and their methods are, traditional which has worked fine so far because they have been serving the clients who belonged to the same generation.
But the times are changing and this generation gap needs to be filled if they want to attract, and retain, customers from this generation and the one after. To do that, wealth managers need to adapt to the latest technologies and methods in the wealth management space too.
So, here’s a non-exhaustive list of industry trends that will be seen come 2020.
The Number of FinTech Companies will Rise
FinTech companies with their innovative and technology-oriented approach have been disrupting the industry with solutions like data analytics, predictive analysis through Artificial Intelligence and Machine Learning. There will be a rise in the number of these companies as better, more sophisticated solutions emerge.
Interactions with Clients will Increase, Less in Person
As the industry moves towards a digitalized ecosystem, the number of interactions between the wealth managers and their clients will increase significantly. Only, these would be more in the form of textual or visual interactions rather than in-person meetings. There will still be meetings but far less. The new generation of affluent likes to stay updated with everything all the time which means they would want to have daily updates and reports.
The Need for Customizations will Increase
Technology has enabled customizable solutions for wealth management. FinTech is playing a huge role in making this option available to the wealth managers. With these customizations, every client could be presented with a portfolio or wealth plan tailored to their needs. This would need in-depth profiling of the clients and prospects to propose the most relevant customization to them.
These emerging technological trends would mean that wealth managers would need to find relevant technological partnerships with FinTech companies to prepare themselves for these challenges.
Valuefy is a FinTech company that enables wealth managers with technological solutions to ensure the digitalization of their processes and empower them with comprehensive analytics, Portfolio Management solutions, reporting, and relationship management.