Knowledge Base Articles

Steps to heaven - How to take your customers on a journey to the land of digital trust

Fredrik Daveus, CEO at Kidbrooke®, explores how to build trust in digital wealth management for the Swiss WealthTech Landscape Report 2021 by The Wealth Mosaic.

Blog Articles

Trends Shaping the Wealth Management Industry - First Quarter 2023

The past year has been witnessed to slow growth and the ongoing battle against inflation causing widespread layoffs, lean payrolls and difficulty in filling skilled positions. 2023 has already seen its first casualty. California lender Silicon Valley Bank collapsed after tech investors and startups set off a bank run. This became the second-largest bank failure in US history, after Washington Mutual in 2008. The threat of a global economic slowdown looms and businesses look for ways to thrive through the downturn. Certainly, the interplay of the factors put together will ultimately shape the story of economic growth for 2023. In wealth management, the implementation of generative AI tools, a rise in interest in embedded wealth and the consumer duty requirements are reshuffling wealth managers’ approaches to business.

Top Trends to Watch in WealthTech during 2023

Global consultancy firm Bain & Company released a new study predicting that customer demand for wealth management services will double over the next eight years, growing to more than $500 billion by 2030. Moreover, with total global financial wealth in 2021 reaching $250tn, 12% of UK adults are using at least one investment app as of July 2021, proving that the industry is only to get stronger. But with inflation roaring again, will the explosion in retail investing built around bull markets take a hit? Let’s delve into what trends are shaping the industry.

Decoding Inflation with Financial Planning Software

As European energy prices break new records, many consumers wake up to a significantly altered financial outlook. This change occurs through multiple factors. First, the increase in household outgoings makes living costs less manageable. Second, as central banks strike an increasingly hawkish tone to keep inflation expectations from spiralling out of control, rising interest rates make it more difficult for borrowers to service their mortgages.

Asset Management: Exploring digital distribution channels

Since the introduction of reliable self-service channels in the wealth management sector, some asset managers have been contemplating providing digital investment guidance and direct-to-investor models to obtain a low-cost distribution channel. This strategy has its merits in driving down the average cost per acquisition, but the key challenge is to nurture and retain long-term customers. Could digital channels match the teams of physical advisors in terms of quality ?