According to a 2016 report by Capgemini, wealth among high net worth individuals (HNWIs) across the world has accelerated over the past few years, crossing the US$56.4 trillion mark in 2014. The report also says that “HNWI wealth is expected to grow at an average annual rate of 7.7% from the end of 2014 to 2017.” With this global growth in wealth, as well as changes in demographics, newer avenues and demands for growth have emerged. This is why banks across the world are focusing more on their priority banking solutions that offer effective wealth management strategies not only for HNWIs but also for the upwardly mobile professional. Here’s a look at the trends that are expected in this arena in 2016.
Top Trends in Wealth Management for 2016Priority banking solutions aimed at wealth management need to address the emerging needs and demands of the consumer.
Top Trends in Wealth Management for 2016Priority banking solutions aimed at wealth management need to address the emerging needs and demands of the consumer.
- The Changing Face of the Investor: A 2015 report by Deloitte on disruptive wealth management calls today’s investors “the Re-wired Investor.” The reality is that today there not only are baby boomers but also Gen X and Gen Y looking for create and manage wealth. Their approach to banking advice is very different to that of the previous generations. For instance, today the investor wants to be treated in a personalized manner, with special attention to their specific financial needs and goals. They are also looking for greater control over their financial circumstances. They prefer to do their own research rather than blindly following the suggestions of a financial advisor. Priority banking services are looking to understand the changing face of the consumer and tailor their products accordingly.
- Multichannel Delivery of Advice: With increasing using of Big Data and various forms of analytics, there is a greater need to integrate and coordinate omnichannel advice delivery. While some services are automated today, others are provided by personal financial advisors. The consumer is also accessing services via a variety of modes, from desktops to mobile, from in-person discussions to telephonic conversations. According to a 2016 report on wealth management trends by PwC, “Multichannel delivery will become a strategy for delivering advice to clients in the most convenient, most efficient way possible based on each client’s particular needs at particular moments.”
- Changing Service Model: Not only is there a much broader range of products offered by financial institutions today, banks also need to manage a diverse range of regulatory environments, back end processing and providers. This means that currently followed processes in service delivery will also need to be redesigned to enable more efficient live scenario activity and analysis, live reporting and alerts, live portfolio and investment performance analysis and more. Most importantly, priority banking services need to be goal oriented, focused on each individual’s short and long term financial goals.