Two years after COVID-19, the year of 2022 is promising and creating new challenges. These challenges will bring developments in the wealth management industry and will have an impact on how wealth managers think, invest and operate.
Let’s have a look on the emerging trends that have the power to transform Wealth Management:
- Adopting the Cloud Technology
In the following year, cloud adoption will continue to grow. While it is not feasible in many areas across the globe, this technology provides competitive advantages from faster time to market to improved scalability and security.
- Personalized tailored services using Artificial Intelligence Technology
Firms increasingly attempt to deliver personalized tailored services in order to retain an exclusive relationship with their clients. For this reason, bespoke investment plans are designed from the ground up following the customers’ needs and choices. But this necessitates a lot of data and time, which is why companies are investing in analytics platforms and AI technology.
- Digital assets are becoming part of a wealth management portfolio
Digital Assets are receiving a lot of attention nowadays; beyond the well-known decentralized digital currency Bitcoin, there are hundreds of cryptocurrencies to choose from in the portfolio such as tokenized securities and non-fungible tokens (NFTs) that let investors have a section in real-world assets. However, regulators are gradually putting in place frameworks to address legal concerns, and investors are diversifying their portfolios as a result of overvalued stocks and low-rate bonds.
- Investing in ESG is a real wealth management trend and big business to retain and attract customers
It began as a European regulation, but it is now viewed as a great opportunity to retain and attract customers across the world, because customers are looking for investments that match their values, and they want to put their money into sustainable investments that help them contribute to positive outcomes.
While the growth of robo-advisors in recent years may have been exaggerated, hybrid-advisory may be the industry's response to empower a new generation. The customers nowadays want high quality of services from their financial institution as they do from Big Tech, as well as an exclusive partnership.