Four Key Trends Reshaping the Wealth Management Industry

The global pandemic has not only impacted our personal lives but has also reshaped the very fabric of industries and professions worldwide. The wealth and asset management industry, in particular, has been thrust into a new era, requiring professionals to adapt, innovate, and redefine their strategies.

This blog explores the key trends and insights shaping the wealth management industry amid this new normal. As we face constant change and unpredictable circumstances, professionals must understand how to navigate these challenges and seize growth opportunities. 

Here are the four trends that are shaping the wealth and management industry:

Trend 1: How Generational Ownership Shifts Shape Technology Adoption

The wealth management industry is experiencing a significant shift as millennials, born between 1980 and 2000, rise to leadership positions. By 2025, they will comprise approximately 75% of the global workforce. This generation of finance leaders has distinct preferences regarding technology and expects instant access to information for informed decision-making.

Cloud-based technologies align perfectly with the accessibility and flexibility that millennials demand. These technologies offer advantages such as enhanced security, scalability, and cost savings by eliminating the need for extensive IT infrastructure. Millennials trust and rely on technology to efficiently make better decisions, driving the need for change and bringing higher efficiency and lower costs to the wealth management industry.

Key Characteristics:
  • Tech Savvy
  • Difficult to Satisfy
  • Socially Active
  • Seek Inter-connectivity
Key preferences:
  • Digital touchpoints, ease-of-use, and faster service
  • Personalized services
  • Ease of accessing and sharing data
  • Seamless and omnichannel access


Trend 2: Digitalization is Essential in the Age of Disruption

To keep pace with the competition and stand out to core audiences, finance leaders in the wealth management industry must prioritize digital innovation. Evolving customer expectations, intense competition, the need to streamline operations, and unpredictable market upsets require a constant push for reinvention and innovation.

Traditional investment firms can transform themselves by leveraging new technologies to meet market demands and improve the customer experience. From increased personalization to using robo-advisors, data collection, and analytics advancements, the right tools empower wealth management firms to connect with clients more effectively and attract new prospects.

Leveraging open APIs ensures valuable data flows seamlessly within the organization, unlocking valuable insights and enhancing overall efficiency. Embracing digital adoption is critical for remaining competitive and relevant in the industry. Identifying and adopting new technologies is just the beginning — connectivity between systems is essential.


Trend 3: The Rise of the Sharing Economy

The sharing economy, characterized by exchanging assets or services between consumers, reshapes the financial services industry. Customers are becoming savvier in their digital choices, putting more trust in companies emphasizing technology in service delivery.

This growing trend presents an opportunity for wealth managers to deliver value beyond traditional methods and increase wallet share by democratizing wealth management through digital capabilities. Cloud-based software, accessible online from anywhere, has revolutionized businesses’ operations, eliminating the need for substantial upfront investments.


Trend 4: The Convergence of Services on Digital Platforms

Partnerships and integrations are driving the consolidation of services in the wealth management industry. The goal is to offer consumers a convenient one-stop-shop for all their financial needs, from payments to mortgage loans and tailored financial advice. By integrating services such as managed investing, lending, checking, and retirement, firms can attract clients and enhance their overall value proposition. 

This is evident in Asia, where Tencent’s WeChat has already established an all-encompassing ecosystem of services within a single mobile app. With offerings spanning finance, social sharing, third-party services, and public services, WeChat has amassed over a billion users. This exemplifies the potential of a comprehensive platform approach in the financial industry.


Moving forward in the wealth management industry requires a proactive approach to technology adoption and adaptation. Successful firms are willing to embrace change and implement strategic plans to navigate the evolving landscape. 

The journey towards digital transformation in the wealth management industry requires a thoughtful and forward-thinking approach, where technology acts as an enabler for progress and innovation.Contact us by booking a free discovery call and learning more about Sage Intacct and how it can help position your business for long-term success in an ever-evolving industry.

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