7 Key Trends Driving Wealth Management in 2023

With an estimated 40 to 60 trillion dollars set to change hands from the original baby boomers to their Gen X and Millennial children, this trend will remain of critical importance to wealth managers focused on higher net worth clients.

Multiple studies have shown that a younger generation of investors are seeking investments that reflect their underlying values and those that are not willing or unable to address client demands for ESG compliant portfolios risk losing those clients to other service providers.

Hybrid working models and digital collaboration tools have granted the flexibility to make new engagement models possible and in some cases, these may become a preference for both advisers and their clients.

With rising costs and clients demanding

more than ever, wealth managers, especially those in larger and less specialized customer segments, will recognize that the rapid ability to enhance a product or service offering may best be achieved by outsourcing to a specialist service provider or vendor.

The increase in the use of APIs will allow wealth managers to offer more targeted and relevant solutions and services to multiple client segments, and for global or multi-region providers, across multiple geographies.

The ability to leverage existing customer data in a structured manner will enable the creation of insights that may lead bespoke or semi-bespoke proposals. These will, at the very least, create a perception of a unique, tailored offering that if formulated correctly, is more likely to appeal to the selected sub-set of customers.

Reflecting rising trends focused on hyper-personalization and ESG, we see a rapid growth in personalized or custom indexing. Advances in technology have helped to ease the associated administration burden making this financially viable for a new range of potential investors.