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.
Key Trends in Wealth Management Q3 - 2023
How can wealth management companies ensure profitable growth during this volatile era? As the industry continues navigating an increasingly difficult financial landscape, several key trends have continued reshaping how wealth is managed. Among these trends, the rise in importance of the environmental, social, and governance (ESG) factors, more regulatory attention to consumer treatment, more recognition of the financial analytics tools, and the deeper integration of AI, machine learning and automation, all stand out as notable drivers of change.
Bridging Gaps in Consumer Duty
The purpose of the UK’s latest regulatory update goes beyond additional reporting and addresses the value created by wealth management and insurance businesses. It aims to set a higher standard of care and deliver better consumer outcomes throughout the customer journey. The overarching principles set out to change how products and services are evaluated, priced, explained and supported, and it should transform the relationships within wealth management value chains.
Democratising Wealth Management by Utilising Financial Analytics
The wealth management sector is embracing emerging tech like machine learning and gamification to enhance workflows. Despite inflation and conflict challenges, technology is poised to reshape finance. A key concern though is how to leverage tech to expand services while maintaining margins for mass affluent clients.