There is a marked shift in the way financial planning and wealth management is shaping up in today’s fast-paced economy. With the digital future in mind financial advisors and wealth management firms are looking for more data-driven, and efficient tools and solutions to provide more value to their clients.
Apart from that, there are numerous other factors based on different demographics, the use of technology, and a growing demand for a more consumer-centric financial planning and advisory model. There is also a higher frequency of collaboration within the community, all being spearheaded by the changes taking place in the way things are done in this day and age. Let’s take a look at a few trends that we expect to see in the financial planning and wealth management industry in 2019.
- Adoption Of New Technology
In today’s digital environment, wealth management firms and certified financial planners are constantly looking for ways to quickly respond to clients’ needs and promote new solutions and services.
Apart from that, the younger HNI consumers are extremely tech-savvy and highly responsive to digital channels. These clients expect their financial advisors and wealth managers to be well versed with the latest fintech offerings and also have the ability to adapt quickly and effectively to changes in the market.
- Increased Focus On The Consumer
While most good wealth managers always knew that it’s not all about the money, this philosophy will be adopted by more and more financial planners and wealth management firms all over the world.
We will see institutions go beyond the usual assets and liabilities mentality and build a deeper connection with the client in order to provide more value. Financial planners will be interested to know more about their clients, their goals, and their personal beliefs in order to deliver holistic and well-rounded financial plans.
- Growing Impact Of Women
Women now control a significant amount of the country’s wealth. While the financial services industry has traditionally been focused on their male counterparts, more and more women investors are taking the help of certified financial planners or wealth management firms to handle their money.
Firms will have to modify their processes in order to become more women-friendly as this clearly indicates a market opportunity that should not be overlooked.
- Formation Of Ecosystems
The permeation of digital technology into the field of wealth management has enabled the formation and growth of dedicated wealth management ‘ecosystems.’ These ecosystems serve the purpose of being common grounds for interaction and business collaboration.
These ecosystems will accelerate the coming together of financial planning capabilities where all stakeholders like wealth managers, financial institutions, and independent advisors to enable a more coherent way for each of them to do business.
They also open up channels for international partnerships, which helps in bringing about a more seamless cross-border financial planning experience.
- Rise Of The Millennial Investor
The next generation of investors has already started investing and form a significant percentage of investors who are working with or looking for certified financial planners and wealth management firms. These investors, however, are warier of the market than the previous generation and are very cautious while investing. This will lead to a definite market change where firms and advisors would be looking for more ways to move from being product oriented to being more customer oriented and ensure their clients are well informed about their portfolio and their money.