With rapidly evolving wealth management client profiles to include Millennials and Gen Z, HNWIs, women, non-traditional families and more, businesses need to train advisors and staff to meet expectations and behaviors. more diverse and segment-specific customers.
Hiring and digitally empowering a diverse workforce of advisors while retraining staff to engage with a variety of customer segments is the way to go. Nonetheless, 63 percent of advisors surveyed said they are unhappy with their wealth management firm’s efforts to provide tools and training to meet changing client needs.
To meet changing expectations, companies will also need to employ bigtech strategies with hyper-personalization, lifestyle ecosystem offerings, and intuitive integrated interfaces to maintain their relevance among a diverse customer base.
With the current boom in the stock markets, HNWIs are also looking to diversify their portfolios with alternative investments. Interestingly, 90% of HNWIs surveyed in Asia-Pacific said they had invested in cryptocurrencies and 89% in other digital assets such as website domain names or apps.
Special purpose acquisition companies are becoming increasingly popular, while non-fungible tokens are slowly gaining credibility as an asset class. In terms of fees, 39% are interested in free trading, but their wealth management company has yet to agree.
The quarter-century edition of the World Wealth Report has captured the changes and megatrends of modern industry, but the future is already shaping up in the meantime.
New tech-driven wealth is finding its way into non-typical investment avenues, as we see in the Asia-Pacific region. Millennials either reinvest the money they earn from going out into the real economy through new start-ups or create their own investment funds in collaboration with other young HNWIs.
For wealth management companies, investing in the right educational tools and resources in new asset class offerings and investments creates a potentially significant market opportunity.
Elias Ghanem is VP Global Head of Market Intelligence, Financial Services Capgemini and Li Cheng is Senior Director, Financial Services Capgemini A&NZ