Welcome to Kidbrooke’s summary of the hottest trends in the wealth management space for the fourth quarter of 2021!
1. Successful wealth managers will make the most of advanced analytics
According to Gartner, the analytics systems used by wealth managers will become more predictive, offering guidance on actions that these firms should be taking. However, this is still very much an evolving area – while 88% of the wealth management executives polled in Gartner’s 2021 Financial Services Technology Survey believe that such systems are effective, only 13% are currently using them. Nevertheless, the global research provider indicates “a steady progression on the deployment of this technology”. At Kidbrooke, we strongly believe that this trend will remain for years to come. Advanced analytics is instrumental to providing customers with access to hybrid wealth services considering the full picture of their financial situation, as well as facilitating a relationship with them through digital and physical channels.
2. Having an investment strategy with respect to digital assets will become critical in metaverse
After Mike Winkelmann’s Everydays – the first non-fungible token (NFT) of a digital artwork to be offered by a major auction house – sold for $69m (£52m) at Christie’s in March, NFTs quickly became a point of interest for wealth managers and their customers. The excitement about the emerging concept of digital assets was followed by Marc Zuckerberg’s announcement of Meta’s new course of building a metaverse – a vast, immersive online realm that would encompass digital societies and economies. Just like in online gaming, spending time in a digital realm creates demand for its attributes, be it works of art or other features. As the metaverse expands, the value of digital assets would likely increase. Although we are mindful that such a massive shift is unlikely to happen overnight, wealth managers would benefit from keeping an open mind, learning more about digital assets, and being prepared for informed conversations with their customers.
3. Leveraging technology to better engage with clients will likely pay off
As a result of accelerated digitalization over the course of the pandemic, wealth managers have explored new means of engaging their customers. After adding digital channels to achieve better cost efficiency, firms unlock the opportunity to interact with their customers in a more efficient manner. For instance, Kidbrooke’s customers leverage advanced financial analytics to analyze their customer’s balance sheets and generate proactive notifications informing the individuals about important milestones of their financial situation and tips about improving their financial health. According to recent survey results by Deloitte, leveraging advanced technology gradually pays off – 38% of respondents from digitally advanced firms expect significantly better revenue prospects in 2022 compared to just 13% for other, less digitally advanced firms.
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Sources:
- https://www.capgemini.com/wp-content/uploads/2021/11/Top-Trends-in-Wealth-Management-2022.pdf
- https://www.raconteur.net/report/wealth-asset-management-2021/
- https://www2.deloitte.com/us/en/insights/industry/financial-services/financial-services-industry-outlooks/investment-management-industry-outlook.html
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