The wealth management industry has weathered tough economic and geopolitical headwinds with no sign of easing as we enter the new year. These challenges have had lasting effects, indirectly shaping the year to come, from a client perspective and also from a regulatory and industry consolidation perspective.
So, what does that mean for 2023? Mario Cohn, Managing Director at Zedra in Switzerland looks at the top four trends he expects to see play out in the wealth management industry in the new year.
Improving the digital experience
2023 will see the continued digitalisation of the client experience, from onboarding to day-to-day activities. This will be necessary both on the financial side, but also on the client management structure side, i.e. administration, client onboarding, etc. Face to face will never be replaced, though if technologies aren’t adopted by market participants, they will face a competitive disadvantage.
Increasing due diligence
There will be an increase in due diligence information requests from clients, mainly across digital assets and ESG, to ensure their investments and the companies they are engaging with observe and respect regulations and values.
Protecting assets from inflation
Given high inflation, higher interest rates and geopolitical framework, clients are positioned defensively. This ranges from how they position themselves with their assets, to how they protect these assets with the use of asset protection and succession planning elements.
The consolidation wave to continue
The wave of consolidation of larger players across the industry will continue. That being said, this also opens the door for the emergence of more specialized/boutique firms, a win for clients who expect a completely personalised approach and relationship with their partners.