The demographics of the wealth generation segment of the population is changing rapidly. The wealth generators of the society now consist of millennials and high net worth women. Something that was still upcoming in the last decade and before.
Fremont, CA: Customer experience and digital transformation have been driving the change in the field of wealth management. Wealth managers should keep their focus on these two areas to keep up with client demands and market innovation. Technology has become a critical aspect of every business, and it will play a vital role in the way forward for the wealth management sector. The importance of wealth management cannot be understated, given the impact a cyberattack can have on an organization clientele and reputation. Here are some of the emerging trends for the wealth management sector.
A large number of investors are now focusing on the societal impact of their investments. This is mainly due to the new generation of investors who are more aware of the responsibilities that come along with wealth generation. The new generation of investors also consists of a large number of high net worth women. These new investors want their advisors to integrate ESG approaches into their portfolios. This is also leading to the development of new tools and offerings by asset managers to provide investment opportunities in sustainable investments.
Adapting to demographic shifts
The demographics of the wealth generation segment of the population is changing rapidly. The wealth generators of the society now consist of millennials and high net worth women. Something that was still upcoming in the last decade and before. This means that wealth management firms need to reinvent their offering and customer relationship management to keep up with the times. Studies have shown that high net worth women are expected to transfer around USD 68 trillion to their heirs in the next 25 years.
The digital era is upon us. Everything around us is enabled by technology, or can at least be enhanced further with the help of technology. As digitization continues to gain traction, the cybersecurity concerns have also risen in unison. The financial sector was among the top three industries affected by cyberattacks in 2019, and as wealth management firms increasingly turn to digital solutions, the threat of cyberattacks also rises.
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