2017 will add to the challenges the wealth management industry is facing
The wealth management industry has been undergoing transformation since the financial crisis, and 2017 will be another year marked with changes to business models and the way providers interact with clients. Many trends observed in 2016 will continue over the next 12 months, with regulation and its costs affecting the financial performance of competitors, and market volatility (often fueled by surprising turns in the geopolitical landscape) keeping portfolio managers busy. Yet 2017 will also be a year of opportunity for competitors that embrace the change and succeed in those areas of the market where growth can be achieved.
- As market volatility persists, managing the level of investment portfolio risk and clients’ expectations in terms of returns will be more important than ever.
- While the European industry is aware of the updated Markets in Financial Instruments Directive (MiFID II), most wealth managers remain uncertain about its effects on the market.
- “Regtech” solutions are another reason for incumbents to partner with fintech startups. Blockchain technology can also be more widely adopted if compliance is ensured.
- Purely digital wealth management is not a proposition that will appeal to all HNW investors, but providers will continue to target carefully selected audiences with new robo-advice platforms.
- Smaller and local providers will gain market share in the global wealth management space.
M&A activity in mature economies will be driven by competition for the client portfolios of aging independent financial advisors (IFAs) who are approaching retirement.
Price: $5,250 (Single User License)
Published: Dec 2016
Publisher: Verdict Financial
Report Format: electronic pdf