Wealth management will look different in 10 years

Summary: 

Banks and financial institutions must be aware of their core competencies and scale them. At the same time, the consulting and advisory business must be expanded and enriched with nine/additional services and value streams. This creates “new business” and, above all, business “beyond banking”. The technologies make it possible to automate and scale many things, whereby the roles of the business resources in particular will change significantly.

These/Hypothesis:

New generations of customers with expanded expectations and a different self-image are making more intensive use of the technological possibilities. However, they do so without having to do without a personal contact person.

Changes due to technology:

Due to technological progress, the customer contact points or points of sale in wealth management will move further and further into the electronic realm. It will therefore be important for wealth management to be able to identify and use the optimum topics, times and media for addressing customers on the basis of the information that can be analyzed, and then of course to do so.

Developments of alternative information media, especially through the abolition of the smartphone, must be considered here. New forms of communication, collaboration models (e.g. by means of holograms) are becoming commonplace.

Changes due to expanded expectations and a different self-image of customers

The goal of wealth management must be to qualify for other tasks and provide services through extremely high quality in the core business. Customers will expect wealth management to become a “trusted blended advisor” in comprehensive areas of life. The foreseeable developments around Open Banking, which will evolve into Open Finance and further into the Open Economy, gives a foretaste of this.
Should Wealth Management evade these opportunities, new or adapted established players will take over this field and thus gradually the customer relationship.
The self-image in this customer segment will ensure that a democratization of wealth management will only take place to a manageable extent. Otherwise, the exclusive touch will be lost and, due to the availability of wealth instruments for the “masses,” the opportunity to generate exceptional alpha will also be lost.