5 wealth management trends worth watching

July 19, 2017 by Alex Peter

An advisor reviews wealth management trends to benefit her firm.

about the author:

Alex Peter

Product marketing strategist

Alex began his career at Advicent as a mid-market business development representative. He now divides his time between assisting his team and working with enterprise clients. Alex is passionate about FinTech and creating success for his team.

Back in January, I wrote about the top 5 wealth management trends in 2017. Even though it has only been about six months, it feels like a lifetime ago. We have seen the Department of Labor fiduciary rule get implemented, President Trump has become inaugurated, and all of the other minor changes that happen throughout the year. The momentous changes we have seen in wealth management this year has prompted me to reassess the top five trends in the industry  but with an eye to the future.

Millennials are normal people

A few months ago, I wrote about how Millennials are not to blame for problems in the financial services industry. As we progress through 2017, we will see firms and advisors scratching their heads wondering how they will be able to attract this younger generation into their business  both as advisors and as clients. For some advisors and firms, it will click and they will move to have a solution in place by the end of 2017 so they can maximize their efficiency when dealing with the great wealth transfer.

Client experience reigns supreme

User experience and design will continue to improve and deliver results. By delivering unique and custom user experiences, firms will be able to show how their services and products are able to help clients reach their financial goals. Firms with smart leadership will do this for existing clients to help boost referrals, improve accuracy of information, and streamline data gathering to improve advisor efficiency.

Firms with brilliant leadership will take this to the next level to deploy a truly unique onboarding process that tells their unique story to prospects. This will also allow their advisory team to build relationships and trust, while offloading their most arduous and repetitive tasks to their technology stack.

Transparency and best interest advice

It is no secret that fiduciary advice and clear reporting on monetization are global trends. CRM2 in Canada, RDR in the UK, and Australia’s "Best Interest Duties" rule  all of which have been in place since 2013. These regulationswhether a reflection of the global demand for fiduciary advice or the cause of itcertainly will not be going anywhere soon.

Ultimately, this means that if firms want to attract new clients from competitors or want to break into untapped market segments, they will need to find ways to cut costs. Firms will also need to show clients the unique value they are providing, as well as transparency around how they generate their revenue from those clients.

Hybridization continues

As robo-advisors continue to add human elements to their firms in the form of call centers, we will see self-driven capabilities and onboarding functionalities added to traditional wealth management, insurance, and financial planning firms.

This approach will have a positive effect on firm revenues since they will be able to onboard new clients quicker, easier, and at a lower overhead cost than ever before. Additionally, the new digital capabilities that these firms employ will empower them to eliminate silos in their business and they will be able to maximize exposure and adoption to various services and products across all clients.

Back-office technology takes center stage

As firms continue to move forward on maximizing efficiency in both process and workflow, as well as minimizing overhead, we will continue to see an adoption of advisor "quality of life" technologies take center stage.

Most advisors are best equipped for face-to-face meetings, and the remainder of 2017 will see an adoption of technology that helps advisors support their face-to-face meetings. This will also allow advisors to reduce time spent on technology in order for them to spend more time with prospects, demonstrating why they should work with the firm. This will also help advisors work with clients, deepening the relationship they have with not only the advisor, but with the firm as well.

To learn more about how Advicent can help your firm prepare for what is ahead, click here.