Trends Taking the Wealth Management Industry by Storm Q4 2023
In the dynamic realm of wealth management, 2023 has unfolded as a pivotal chapter, sculpted by a confluence of regulatory shifts, the rise in AI implementation, political mayhem across the globe, and ongoing inflation. Furthermore, with retail investors seeking increasingly personalised services and regulatory bodies worldwide recalibrating their expectations concerning measuring climate impact, it is fair to claim that we are on the brink of entering a more scrutinised, digitally empowered and environmentally conscious phase of the industry’s lifecycle. As we prepare for the end of the year and chalk out strategies for 2024, let’s delve into the trends that dominated the sector in the last quarter of 2023 and will undoubtedly continue to define the wealth management landscape.
Enhance Mutual Fund Grouping Using Machine Learning
The methods used to recommend mutual funds to customers vary greatly between companies. Often the recommendation techniques used rely on using metadata of the mutual funds, such as region, category, or investment objective. By grouping using these properties investors are given an overview of funds with similar classifications and can select funds from the groups they are interested in. And while grouping mutual funds in this way may provide investors with a convenient way to explore funds that align with their preferences and investment strategy, this method of recommendation has some potential limitations and risks.
Forecast: The Core Ingredient of Engaging Financial Experiences
It has been a few years since digital transformation appeared on the priority list of the financial industry executives. While the evolutionary process of tapping into the latest technology is continuous, the pandemic has accelerated it dramatically. Even the most conservative branches, such as wealth management, now contemplates transforming their businesses into more digitalised operations. Some financial advisors embrace innovation wholeheartedly, reaping all the benefits and facing all the risks of early adoption, while others take a more cautious strategy. OutRank® advocates an incremental, forecast-driven approach when building digital journeys for your customers or financial planners, regardless of where your competitors are in their digital transformation efforts. At Kidbrooke®, we provide Forecast, the module of OutRank®, which delivers predictive forecasting functionality applicable to various financial planning use cases and digital journey elements.
WealthTech Trends for the Third Quarter 2021
Every quarter, we summarize the three most prominent trends in WealthTech and we are excited to share our latest summary with you today! In the third quarter of 2021, we noted that it's increasingly important to acknowledge the environmental, social and governance aspects of companies' performance as the sustainability reporting matures. Second, accessing digital capabilities through partnerships is one of the most efficient ways for incumbent financial institutions to deliver competitive services to their customers. And third, customer engagement is one of the most important activities that a financial services firm can undertake. Not only does it build customer loyalty by developing relationships with customers, it will ensure they choose you over the competition.